The global gold market saw its strongest performance in over a decade, with prices surpassing $2,000 per ounce in early 2024 and reaching record highs above $2,700. Analysts predict the bullish trend will continue through 2025, with prices potentially reaching $3,000–$3,250 per ounce. Central banks remain key drivers of demand as they diversify reserves amid economic uncertainty, geopolitical tensions, and rising de-dollarization efforts.
China, Poland, and Singapore led recent gold purchases, contributing to record-high central bank acquisitions. Slowing US economic growth, fiscal deficits, and inflationary pressures are expected to sustain gold’s appeal as a hedge. However, individual investors are urged to remain cautious, given potential market volatility and high price levels.