Gold prices have surged 30% so far in 2025, outperforming long-established safe havens like the Japanese yen, Swiss franc, and US Treasurys. The rally reflects mounting investor anxiety over rising global debt, unpredictable fiscal policies, and deepening geopolitical tensions, especially in the Middle East.
Unlike government-issued assets, gold is valued for being outside the control of any single country. It carries no counterparty risk and isn’t tied to political decisions, making it particularly attractive in times of economic or strategic uncertainty. That independence has become more important as confidence in traditional safe havens has weakened.
The US dollar has fallen nearly 10% this year, while US Treasurys faced sharp sell-offs in April and May following President Trump’s rollout of new tariffs and a credit rating downgrade. Although yields have since stabilised, investor concerns about the US’s fiscal trajectory remain. Japan and Switzerland, meanwhile, have seen gains in their currencies, but both countries face their own headwinds—Japan from low interest rates and structural challenges, Switzerland from expectations of further rate cuts.
Against this backdrop, gold has been consistently hitting new highs, trading above US$3,400 and peaking above US$3,500 in April. Its rise is also supported by strong central bank demand. In 2024, global central banks added over 1,000 tonnes to their reserves for a third consecutive year, with the European Central Bank reporting that gold had overtaken the euro as the second-largest global reserve asset.
As volatility increases across currency and bond markets, gold’s independence from government liabilities and its physical scarcity are helping it reclaim its status as the world’s most reliable store of value.
