Gold’s relentless climb to unprecedented highs is increasingly viewed by analysts as a fundamental realignment of global asset allocations, driven by sustained central bank purchases and persistent geopolitical uncertainty.
The precious metal marked its tenth London benchmark record in 13 sessions this month, hitting an intraday peak of $4,379 per troy ounce on Friday. This surge contributed to a total of 48 new daily highs for gold in 2025, a pace not seen since 1979.
Investment banks including Goldman Sachs, HSBC, Bank of America, and Societe Générale now project gold prices could reach $5,000 per ounce by 2026.
Lina Thomas, a commodity strategist at Goldman Sachs, emphasized that central banks are consistently acquiring substantial amounts of gold. She noted private investors are also catching up amid expectations of interest rate cuts by the U.S. Federal Reserve. Thomas described the current demand as “more normalization than mania,” suggesting a sustainable shift after years of under-allocation.
Silver has mirrored gold’s performance, recording its sixth consecutive historic record in London trading Friday and accumulating an 86.6% increase in 2025. This nearly quadruples its growth rate from the previous year.
This robust demand unfolds against a backdrop of escalating global tensions. Recent events include accusations of “ugly methods” by the United Kingdom’s intelligence agency against Russia, Iran, and China.
Additionally, U.S. President Donald Trump reversed a missile sale to Ukraine after a call with Russian President Vladimir Putin. China’s Commerce Ministry also criticized Trump’s rhetoric on rare earth elements amid ongoing trade tensions. These geopolitical factors reinforce gold’s traditional role as a safe-haven asset, maintaining high institutional interest.
The market sentiment is described as “absolutely relentless” by Mitsubishi’s precious metals team. They noted aggressive buying observed during any price dips. Social media posts depicted long lines forming outside gold bullion dealerships.
these are the lines that are forming outside gold bullion dealerships rn
some blowoff top type shit pic.twitter.com/tpt04JZpxI
— Pledditor (@Pledditor)
On Friday, gold briefly retreated to $4,280 per ounce after its intraday peak, before fixing around $4,334 per ounce in the London auction. The week’s 8.2% rise in gold’s dollar price was a magnitude last observed in December 2008 during the global financial crisis.
Daily swings of $100 or more, once rare, have now occurred four times in spring 2025 alone. These followed U.S. President Trump’s “Liberation Day” tariffs.
For investors in digital assets, gold’s performance prompts considerations for diversification. Some managers view gold as a complementary hedge to holdings in cryptocurrencies like Bitcoin.
People everywhere are lining up to buy gold as it hits new all-time highs.
But you can buy Bitcoin in one click, no lines, no banks, no limits.
Bitcoin has a fixed supply of 21 million, and over 93% is already mined.
It moves across borders in seconds and trades 24/7.
Gold…
— Evan Luthra (@EvanLuthra)