Gold’s meteoric rise in 2025 marks its strongest start since 1980, with prices soaring to $2,870 per ounce amid what analysts describe as a perfect storm of economic conditions. The rally is underpinned by structural forces beyond traditional drivers like dollar weakness or Fed policy expectations.
Central banks have emerged as key players, purchasing over 1,000 tonnes annually for three straight years, with fourth-quarter buying accelerating to 333 tonnes. This surge in demand reflects growing concerns about U.S. fiscal sustainability and geopolitical risks, particularly following the 2022 freezing of Russian assets.
The current gold rush is further intensified by escalating trade tensions between the U.S. and China, with new tariffs and countermeasures threatening global trade stability.