In the first half of 2025, gold jumped 26%, surpassing all other major asset classes and setting 26 new all-time highs in terms of dollars. The precious metal confirmed its position as a safe-haven asset in the face of growing global anxiety, driven by a declining dollar, steady interest rates, and escalating geopolitical tensions.
The World Gold Council’s mid-year assessment states that 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. As global market instability, inflationary pressures, and trade frictions continued, investors simultaneously turned to gold for safety.
With total holdings increasing by 397 tonnes, or $38 billion, global gold exchange-traded funds (ETFs) made a dramatic comeback, boosting total assets under management to $383 billion, representing a 41% increase. A record $329 billion was also reached by average daily gold trading volumes, indicating strong institutional and retail investor engagement in the over-the-counter (OTC), futures, and exchange-traded fund (ETF) markets.
Although they fell short of the record-breaking gold acquisitions in 2022 and 2023, central banks continued their strategic gold buying. Their steady growth as a hedge against economic instability and currency volatility is indicative of a larger movement away from reserves that are dominated by the dollar. Three main factors contributed to the first-half surge, according to the WGC’s Gold Return Attribution Model.
Also Read:
A Visionary Leader’s Journey from Legal to Energy Landscape: Salam Abou Hanna
A Passionate Entrepreneur’s Journey in Tech and Affiliate Marketing: Mukul Kaushik
About Author
