Despite predictions that the gold market would cool after reaching an all-time high of $2,900 in early 2025, the precious metal’s rally shows no signs of slowing down. Already up 11% year-to-date, gold has smashed through price barriers that skeptics once deemed impenetrable. In India, prices have breached Rs 85,000 per 10 grams on the MCX. That’s no small feat.
The naysayers keep getting it wrong. And why? Because they underestimated Donald Trump’s enthusiasm for tariff threats. Nothing like a good trade war to send investors scrambling for safe havens. Add in the persistent uncertainty around interest rates, and you’ve got the perfect recipe for gold’s continued ascent.
Central banks aren’t helping the bears’ case either. They’re gobbling up gold like it’s going out of style, diversifying away from the dollar. China and Russia? Leading the pack. No surprise there. This institutional buying puts a solid floor under prices that wasn’t there in previous cycles.
Central banks are loading up on gold, with China and Russia leading the charge. Institutional buying creates unprecedented price stability.
Meanwhile, ETF investors have finally joined the party. Fashionably late, as usual. Lower interest rates make gold’s zero-yield look less unattractive. Funny how that works. Inflation fears? Check. Economic uncertainty? Double check.
On the supply side, things are tight. Mine production has plateaued. Major new discoveries? Good luck finding those. Production costs are climbing, and environmental regulations aren’t making things easier. Supply constraints meet rising demand. Economics 101.
The technical picture tells the same story. Resistance levels? Broken. Moving averages? Supportive. Chart patterns? Bullish. Trading volumes are up, confirming the uptrend. The risk-off sentiment among global investors continues to drive significant bullion buying as a hedge against market volatility. In-depth longform content analyzing gold’s performance tends to receive significantly more social shares, particularly on platforms like Facebook where investor communities actively discuss market trends.
Wall Street’s finest are adjusting their forecasts accordingly. UBS sees $3,200. J.P. Morgan and Bank of America are circling $3,000. Even the conservative World Gold Council foresees the $3,000 mark this year.
Goldman Sachs predicts gold exceeding $3,000 by year-end. Most analysts now expect $3,000-$3,300 by mid-2025. The bears have been wrong before. They’ll be wrong again.
