Gold Surges 11% in 2025, Expected to Stay Strong Amid Global Instabilities

Key Takeaways

Gold is up 11% in 2025.
Projected to reach $3,000 per ounce.
Increased US tariffs driving demand for safe haven assets.
Central banks bought 1,045 tonnes of gold in 2024.
Continued volatility expected amid global uncertainties.

New Delhi, Feb 16 (NationPress) Gold has risen by 11 percent thus far in 2025, surpassing both equities and bitcoins, as per industry analyses. Projections suggest that the precious metal could reach $3,000 per ounce and might even exceed $3,080 in the first quarter of this year.

In light of the increased US trade tariffs, significant uncertainty looms over US trade policies. This situation has bolstered the demand for safe haven assets, according to Ventura Securities.

Spot gold achieved an all-time high of $2,943, while Comex gold reached $2,968 an ounce.

There are ongoing discussions regarding tariffs on gold, which have ignited a rush for the physical metal in London, Switzerland, and Asia to transport to the U.S. ahead of any potential new levies.

“Gold continues to trade at unprecedented levels due to heightened demand from central banks aiming to bolster their reserves amidst anticipated fiscal deficits that could significantly inflate and possibly lead to a global recession,” the brokerage noted.

In 2024, central banks purchased 1,045 tonnes of gold, marking the third consecutive year of acquisitions exceeding 1,000 tonnes. Over the last three years, central banks have acquired more gold than what was purchased in the preceding six years prior to 2022.

“The recent surge is driven by a combination of increased tariff-related demand for safe havens, geopolitical uncertainties, inflation worries, central bank policies, and robust demand from both central banks and retail investors,” the report elaborated.

This surge occurs despite rising bond yields and a strong dollar, with US data indicating a resilient economy.

Nevertheless, the current pressures on gold are due to the strength of Treasury yields and the dollar bias, following Federal Reserve Chair Jerome Powell's cautious stance and reluctance to reduce interest rates.

Significant gains for gold are hampered by a strong USD and elevated interest rates. Given that US importers are experiencing inflation due to tariffs, the FED has less motivation to lower interest rates. High interest rates exert additional pressure on non-yielding assets like gold.

Gold is expected to remain volatile, and as long as uncertainty persists, it is likely to sustain a bullish trend, the report concluded.