The first half of 2025 saw a 26% increase in gold prices, surpassing all other major asset classes and setting 26 new all-time highs in terms of dollars. Driven by a declining value of the dollar, steady interest rates, and escalating geopolitical tensions, the precious metal confirmed its position as a safe-haven investment in the face of growing global unpredictability.
According to the World Gold Council’s mid-year assessment, a unique combination of macroeconomic factors, including declining US Treasury rates, monetary easing prospects, and the US dollar’s worst start since 1973, helped sustain gold’s first-half rise. Concurrently, as trade tensions, inflationary pressures, and worldwide market instability continued, investors turned to gold for safety.
The overall holdings of global gold exchange-traded funds (ETFs) increased by 397 tonnes, or $38 billion, increasing the total assets under management to $383 billion, or 41%. Additionally, average daily gold trading volumes reached a record $329 billion, indicating strong institutional and retail investor engagement in the over-the-counter (OTC), futures, and exchange-traded fund (ETF) markets.
Despite falling short of the record-breaking heights in 2022 and 2023, central banks kept up their strategic gold purchases. As a buffer against economic instability and currency volatility, their steady accumulation represents a larger move away from reserves that are dominated by the dollar.
Also Read:
Israeli and Syrian Officials Meet in Baku: Damascus Diplomatic Source
Threats From Iran in the UK Have Significantly Increased
