On Thursday, gold prices continued their downward trend. The price of spot gold remained stable at $3,373.69 per ounce. At $3,397.20, U.S. gold futures were down 0.1%. In 2025, the average price of gold is expected to increase by 35% to a record $3,210/oz. As they diversify their reserves from dollar-denominated assets into bullion, central banks throughout the world are expected to purchase 1,000 metric tonnes of gold in 2025, marking their fourth year of such large purchases, according to consulting firm Metals Focus.
As U.S. President Donald Trump continues to implement his tariff plans, economic uncertainty and geopolitical concerns are driving up gold prices. According to Metals Focus’s annual report released on Thursday, the price increase has so far maintained central bank purchases—a critical demand category—unaffected, with the first-quarter purchases being consistent with the 2022–24 quarterly average.
If anything, trust in the U.S. currency and Treasuries as President Trump’s erratic policy positions have further damaged the ultimate safe-haven assets, his open criticism of (Fed chair) Jerome Powell, and the worsening U.S. fiscal picture. “Increased geopolitical tensions before the start of his presidency have also curtailed the appeal of U.S. assets.
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