Gold prices surged to an unprecedented $3,245 per ounce on Monday, April 14, 2025, marking a new all-time high. The precious metal has seen a remarkable increase, rising from $3,100 to $3,200 in just 11 days.
Before this jump, gold prices had risen more gradually, moving from $3,000 per ounce in mid-March to $3,100 by March 31. Market experts attribute this sharp rise to a combination of factors, notably the growing demand for gold as a safe haven amidst market volatility. Investors are increasingly turning to gold as a hedge against declines in riskier assets like equities.
A significant driver of gold’s recent price surge is China’s rising gold reserves. This comes in the wake of U.S. President Trump’s announcement of a plan to raise tariffs on Chinese imports to 145%. Since November 2024, the People’s Bank of China has been steadily increasing its gold holdings, marking five consecutive months of growth. As a result, China’s share of global gold reserves has steadily risen from 5.5% to approach the global average of 15%.
Analysts suggest that the current gold price rally is largely driven by market reactions to the uncertainties surrounding “Trump 2.0” and the ongoing trend of “de-dollarization.” The central bank gold purchases are a core component of this price increase, further fueled by geopolitical instability and the potential for continued low real interest rates.
Looking ahead, experts believe there is still room for growth in global central bank gold reserves, and the demand for gold as a safe-haven asset is expected to remain strong in the short term. As a result, gold’s upward trajectory is anticipated to continue.
In response to the rising prices, financial institutions such as Goldman Sachs and Macquarie have revised their forecasts. Goldman Sachs, in its latest report, has increased its year-end gold price target to $3,700 per ounce, predicting that gold could reach $3,500 within the year amid ongoing economic uncertainty.
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