New Delhi– Gold’s dramatic surge in 2025 ranks among the sharpest rallies since the 1970s, rivaling the legendary bull runs of 1979–80, 2010–11, and 2020. Unlike those earlier cycles fueled by Western financial crises, this year’s boom is Asia-led — propelled by reserve diversification, official-sector accumulation, and monetary realignment, according to a report released Thursday.
Gold prices have skyrocketed more than 50 percent year-to-date, surpassing $4,000 per ounce on COMEX and reaching Rs 1,20,000 in domestic markets. The metal has notched over 35 new record highs this year, as investors pivot toward tangible assets amid global uncertainty. Silver has mirrored this surge, rising over 60 percent across exchanges, Motilal Oswal Financial Services said in its report.
What began as a cautious start to the year has evolved into a full-blown supercycle, driven by capital rotation away from bonds and riskier assets into safe havens. A sustained dollar index below 100 and the strengthening of the rupee have further supported domestic gold prices.
“Markets are now pricing in a 70 percent probability of U.S. Federal Reserve rate cuts in October and December, amid weaker U.S. labor data and growing fiscal concerns,” the report stated.
Political shifts in Asia have also reinforced gold’s allure. Japan’s new fiscal-dove leadership under Sanae Takaichi has amplified safe-haven demand, while China’s move to position itself as a global gold custodian is adding long-term structural support.
“Gold’s stellar rally reflects a confluence of macro shifts — from fiscal uncertainty and a softer dollar to strategic diversification by central banks. Asia is emerging as the epicenter of this new monetary alignment,” said Manav Modi, Analyst, Commodities and Currencies, Motilal Oswal Financial Services Ltd.
Despite record demand, global mine output has remained stagnant in 2025, constrained by declining ore grades, environmental regulations, and rising operational costs. Recycling has risen slightly but remains below levels seen in prior bull markets.
Demand, however, has been exceptionally strong — led by China, India, Turkey, and the Middle East, where inflation and currency weakness have spurred record levels of safe-haven buying.
According to the report, global Gold ETF holdings have surpassed 450 tonnes, marking their strongest inflow since 2020. Central banks purchased over 600 tonnes in the first nine months of 2025, signaling continued diversification away from the U.S. dollar.
India alone imported 300 tonnes of gold and 3,000 tonnes of silver by the end of the third quarter, underscoring the region’s dominance in the global precious metals market. (Source: IANS)
