Gold has dominated headlines in 2025 as investors seek a secure store of value in a year marked by economic instability and heightened geopolitical risk.
According to LSEG Data & Analytics, the precious metal has jumped 50% since January, outperforming major asset classes and marking its strongest advance since 1979. Rising demand from central banks, concerns over weakening currencies and persistent monetary volatility have made gold one of the most closely watched assets in global markets.
LSEG recently delved into why gold is a save haven during global uncertainty.
LSEG notes that a major catalyst for this rally has been a shift in US monetary policy. The US Federal Reserve’s decision to begin easing comes at a difficult moment, with unemployment rising and inflation still stubborn. Investor appetite for traditional safe havens such as US Treasuries has weakened amid ongoing concerns over government policy and central bank credibility. As confidence in the dollar has faltered, gold has become an attractive alternative.
Geopolitical tensions have intensified the move toward gold. Ongoing conflicts in Eastern Europe and the Middle East continue to unsettle markets, while recent US policy decisions have fuelled uncertainty around future economic performance. LSEG highlights that fiscal plans passed by US lawmakers this summer have weakened the fiscal outlook.
Central banks are another major force behind rising demand. LSEG data shows that emerging market central banks have increased their gold holdings since 2022, when sanctions following the invasion of Ukraine raised concerns about relying heavily on foreign currency reserves. Some 95% of surveyed central banks now expect global gold reserves to increase over the next year.
In this highly uncertain environment, LSEG concludes that gold is again being treated as the ultimate safe haven. With the status of the US dollar as the primary global reserve currency under scrutiny, the precious metal continues to attract demand from institutional investors, central banks and retail buyers alike.
For more insights, read the full story here.
Read the daily FinTech news
Copyright © 2025 FinTech Global
