Gold has surged 35% so far in 2025, hitting record highs as both central banks and investors intensify demand for the safe-haven asset.
The rally has been driven by expectations of US rate cuts, geopolitical uncertainty and rising inflation concerns. Analysts noted that gold is increasingly viewed not only as protection against volatility but also as a core strategic reserve.
Central banks have played a pivotal role, adding more than 1,000 metric tonnes of bullion annually in recent years. Gold now makes up a larger share of global reserves than US Treasuries, underscoring a gradual shift away from dollar reliance.
Investor flows have strengthened the rally. Gold-backed ETFs are seeing consistent inflows, while hedge funds and retail buyers continue to boost positions.
As of the latest close on Sept 4, spot gold is trading around US$3,556 per oz, near all-time highs. Earlier in the week, the price even hit US$3,593.20, breaking previous records.
It is predicted that the bullion could climb another 20% to US$4,000 per oz, citing its strong momentum.
“Gold has moved from being an emergency hedge to a central pillar in portfolio construction,” said one commodities strategist.
With robust retail demand in Asia and central banks still expanding reserves, analysts believe the rally could extend into 2026, keeping bullion at the forefront of global markets.