Gold on the Rise: Why the Precious Metal is Breaking Records in 2025?

In recent days, gold has broken new all-time highs and caught the attention of analysts and investors around the world. With a rise of over 3% this week alone, the precious metal reaffirms its role as a safe haven asset in times of economic and geopolitical instability.

The appreciation movement occurs in a context of falling dollar, persistent inflation in the US, and rising tensions in global trade, driven by tariff policies announced by former President Donald Trump. This environment leads investors to seek refuge outside traditional assets, especially at a time when US Treasury bonds are beginning to lose appeal in the face of uncertainty about the direction of monetary policy.

Factors driving gold in 2025:

1. Weakened dollar:
   The decline in the US currency increases the attractiveness of gold, which is quoted internationally in dollars, making it cheaper for foreign buyers.
2. Fall in market confidence:
   US stock markets have been underperforming, while gold has outperformed. This signals that capital is seeking safety.
3. Trade war on the rise:
   Trump’s “Liberation Day Tariff” has reignited concerns about disruptions to global supply chains, impact on commodities and new cycles of retaliation.
4. Stagflation risk:
   The combination of slow growth and high inflation (especially in the US) stimulates demand for physical, non-productive assets such as gold.
5. Expectations about the Fed:
   If the Federal Reserve decides to pause or even cut interest rates to stimulate the economy, gold is likely to rise even further, given the reduced attractiveness of fixed income.

The new race for security

Not only large institutional funds, but also retail investors and central banks have been increasing their gold reserves. Countries such as China, Russia and India have been accumulating the metal as a way to reduce their dependence on the dollar and protect their economies in the face of the redesign of the international monetary order.

Gold thus ceases to be just a conservative asset and becomes a geopolitical instrument.

Conclusion

The golden metal, often ignored in cycles of prosperity and optimism, returns to the center of global strategic decisions.
Their appreciation is not just a reflection of fear — but a clear sign that the fundamentals of the world economy are in transition.