In 2024, gold jumped almost 27 % and recorded its strongest annual increase since 2010. For analysts, the association of several factors explains this increase: the drop in interest rates on a global scale has strengthened the attractiveness of assets without yield such as gold compared to obligations, while climbing conflicts in Ukraine and the Middle East sparked a rush to safe active
The role of central banks was also crucial: for the third consecutive year, they bought more than 1,000 tonnes of gold. Those of the emerging markets led dance, in order to diversify their reserves beyond the US dollar, against the backdrop of changing power dynamics. However, enthusiasm was not limited to sovereign buyers at all.
Gold -focused ETFs recorded around 3.4 billion dollars in net entries and saw their assets under management beat new records. The demand was notably fed by private investors in Asia, particularly in China, where the fall in the housing market has undermined confidence in real estate. At the same time, taking into account political troubles in Europe and elections in the United States, investments backed by gold have aroused more interest.
The dynamics continue in 2025
Despite an extremely solid 2024 year, the uptime dynamic of gold was maintained in the first quarter of 2025 and the courses reached several historical heights. Observers explain it by increased commercial uncertainty and the return of fears concerning inflation. The firmness of the US administration on customs duties has rekindled investor anxiety given the potential impact on business profits and global growth.
In particular, concerns have strengthened the attraction of gold. Since customs duties have increased import prices, gold regains its effective coverage status against inflation. According to Michigan’s survey, American household expectations concerning the price increase for the coming year are now at their highest level since 1981.
In addition, central banks, especially in China, continue their massive purchases. China has also made a major change in policy by authorizing insurance companies to carry out gold investments, which further widens the investor base.
The demand from individuals is part of the same trajectory. After the beginning of April heckled by the weakness of the dollar and by the unpredictable behavior of the market of treasury bills, individual investors increased their gold positions. However, experts consider that the rebound may not continue indefinitely. A appeasement of trade tensions or profits episodes, such as those we observed on April 4 and 7, could limit future gains.
-In addition, liquidity needs in times of crisis, as evidenced by the corrections suffered by the courses on April 4 and 7 following the “Liberation Day”, could also constitute brakes.
Other refuge values lose their brilliance
If gold shines, other active traditional shelters have been darker. US Treasury bills, long considered as the default in times of crisis, have lost their interest due to increasing yields and concerns about the United States’s budgetary trajectory. Investors are increasingly fearing the explosion of debt, the economic difficulties generated by customs duties and the unclear signals sent by Washington.
The US dollar has comparable weaknesses. Volatility has increased because a higher number of countries are looking for other settlement systems to bypass the greenback. Tensions between President Donald Trump and the Federal Reserve (including controversial comments on a referral to the President of the Fed) frightened the foreign exchange markets and plunged the dollar to his lowest level in the last three years against the Euro. Label in dollar, gold generally benefits from an American currency at half mast, because it becomes cheaper for investors with other currencies.
Bitcoin and other cryptocurrencies, formerly qualified as “digital gold”, were not particularly resilient during recent corrections. Some digital assets have suffered from the turbulence observed in the markets, which has reinforced the idea that they remain too volatile to constitute real refuges.
A long -term strategic role
With the emergence of cryptocurrencies, several voices were raised to say that gold was only a relic of past monetary systems. However, if the recent decline in the markets has demonstrated one thing, it is because yellow metal has become a strategic active ingredient, coverage against systemic crises and an essential tool for the stabilization of wallets.
It should be remembered that gold plays its best role as a strategic active in a diverse portfolio and not as a tactical investment. Investors who try to find the right times to open and close their gold positions are likely to underperform those who keep constant allowances. Indeed, the protective virtues of gold tend to manifest itself suddenly during periods of crisis. Historically, the maintenance of a low gold allowance has improved risk corrected for risk, by strengthening diversification without strongly compromising growth. Even if it does not generate dividend or yield, gold can offer a certain diversification and a non -measurable advantage, peace of mind.
While the global economy is on the verge of deep transformation, the interest of gold is anything but exceeded. He remains one of the few active people who constantly deserve their place in wallets because of his resilience. During the troubled by inflation, conflicts or political upheavals, gold, old and durable, keeps all its brilliance.
