Gold Hits 11 Record Highs in 2025, Nears $3,000—What’s Driving the Unstoppable Rally?

Gold prices continue their record-breaking surge, fueled by central bank purchases, inflation fears, and geopolitical tensions. Analysts predict the rally to touch $3,000 per ounce soon.

February 11, 2025: The gold market is on an unprecedented rally in 2025, setting 11 record highs in under two months. The latest peak saw gold prices surge to $2,906 per ounce, with analysts forecasting a potential climb to $3,000 per ounce.

Also Read: Unstoppable Gold Rally; Prices Surge Over ₹8000 in a Little Over a Month-Should You Buy The Momentum?

In India, domestic gold prices crossed ₹85,880 per 10 grams, marking a 11.7% rise this year alone. The metal’s safe-haven appeal has intensified amid global economic uncertainty, rising inflation, and trade tensions.

Also Read: Infosys Lays Off 700 Freshers, Sparks Controversy

Key Drivers of Gold’s Surge

1. Central Bank Buying & De-Dollarization

• China, India, and Poland are among the leading central banks hoarding gold, reducing reliance on the US dollar.
• China has cut US Treasury holdings, opting for gold reserves instead.

2. Geopolitical Tensions & Trade Wars

• Conflicts in Russia-Ukraine and the Middle East have fueled global instability, boosting gold’s demand.
• Rising US-China tensions over tariffs and trade policies have further driven investors toward gold.

3. Trump’s Policies & Market Fears

Also Read: Top-10 Firms See Surge of ₹1.18 Lakh Crore in Market Cap; Know Their Current Market Worth

• Donald Trump’s election victory has stoked inflation fears due to his expansionary policies.
• Plans for corporate tax cuts, higher tariffs, and trade restrictions have triggered a shift toward gold investments.

Gold Market Trends: Demand & Supply Dynamics

• New York traders have imported 393 metric tonnes of gold due to fears of US tariffs, leading to a four-week delay in withdrawals from the Bank of England.
• India’s gold reserves have jumped 73 tonnes, with the Reserve Bank of India (RBI) increasing gold’s share in forex reserves to 11.35%.
• The World Gold Council (WGC) reported that global central bank gold purchases exceeded 1,000 tonnes for the third consecutive year.

Analysts Raise Gold Price Targets to $3,000

Leading financial institutions have revised their gold price forecasts upward:

• UBS raised its 12-month gold target to $3,000 per ounce, citing demand as a safe-haven asset.
• Citi predicts gold to average $2,900 in 2025, up from previous estimates.
• Goldman Sachs has also set a $3,000 per ounce forecast for the year.

Indian Gold Market & Jewellery Demand

Despite record-high gold prices, Indian jewellery demand remains strong:

• In Q3 2024, gold purchases peaked following a cut in import duties.
• India’s full-year gold demand stood at 563 tonnes, slightly lower than 2023 levels but still significant.
• Investment in gold ETFs and bullion has seen a steady rise, indicating continued faith in gold as a long-term asset.

Conclusion: What’s Next for Gold?

Gold’s strong rally is expected to continue, with global economic uncertainty and geopolitical risks keeping the safe-haven demand high. Experts believe that unless global tensions ease and inflation stabilizes, gold prices could climb beyond $3,000 per ounce in the coming months.

Tags:

Gold Price, Gold Market, Gold Rally, Precious Metals, Central Bank Reserves, Inflation, Geopolitics, US-China Trade War, Federal Reserve, Indian Economy