On Friday, spot gold hit a record 00 3,004.86 per OUNCE ts, marking its thirteenth all-time high in 2025. Prices have already increased by 14% this year since 27% rise in 2024.
“With the constant purchase of the Central Bank, there are several factors demanding. In the background of geographical political uncertainty and current tariff changes, gold appetite remains strong,” said Suki Cooper, a standard chartered analyst.
Since the beginning of the administration of US President Donald Trump, defenseist policies have hit the global markets, its tariff has taken a quick revenge from China and Canada.
“With the sale of equity markets and unexpected political risks, we are starting to see Western investors back into gold,” said John Siampagalia, CEO of Sprout Asset Management, which can lead it to a higher level. (GOL/ETF)
“We consider gold as the source of liquidity in the” insurance Policy Lissy “and a difficult market environment.”
Tariff fuel fears and trade stresses, carry investors to gold as a safe-haven hedge.
Meanwhile, gold stocks hit 40.56 million Ounce T-records in the warehouse received by the Comex-validity, as traders rushed to cover positions between tariff uncertainty. But the flow has slowed down in recent weeks.
Federal reserve
Traders The Federal Reserve is doubling the reduction of the rate, now expected to reduce three quarter-points this year, which is more than just two a day ago.
The Fed has reduced 100 basis points since September, paused in January, but markets are expected to resume in June. It keeps the Dollar Lar under pressure, a quite shift when Trump’s defensive policies strengthen the currency.
Standard Chartered Analyst Suki Kupar said, “In view of the concerns around inflation data and growth, the market is helping to confidence that the simplicity will continue.”
ETF demand
According to February data from the World Gold Gold Council, the demand for gold investors is on the rise, with physically supported Gold Exchange-Traded Funds (ETF) recorded their largest weekly flow since March 2022.
The SPDR Gold Trust (GLD), the world’s largest gold-back ETF, increased the holdings to 907.82 metric tons on February 25, the highest after August 2023. (GOOL/ETF)
“Safe-health wealth will increase in safe-health wealth like gold, especially investors were away from equity growth stocks,” said Dina Ting, the head of the Global Index Portfolio Management of Franklin Templeton.
He noted that when the investment strategy varies, 5% to 10% of gold allocation could provide effective diversity.
Central bank demand
The rise of gold is getting another tail with the demand of the Central Bank. Analysts say that in 2025 strong purchases can push prices to a new sum as the nations continue to stock metal amid economic uncertainty.
“Central banks can forward the purchase of gold amid market uncertainty, not only to hedge against US de Dollar Lur but also to anchor their currency in gold,” said Ting.
A four -month purchase was purchased directly in China’s gold reserves in February. After 18 months of glitter, the Central Bank paused for six months in 2024 before resuming the purchase in November.
In the absence of any improvement in the US Budget deficit, gold could give a high -rise challenge of about 500 3,500, the QUAR Quarry said in a note. Goldum Sach NS raised the 2025 gold target at 1 3,100 at the end of its year.
Central banks took 1000 tonnes of gold for the third consecutive year in 2024, and in the final quarter of 2024 – like Trump’s election wins – the year -by -year purchase increased 54%, said a report by the World Gold Council last month.
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