What drove the gold price in 2025 - and what comes next

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2025 December 22 . 10:17 AM

1 min read

In the picture I can see the gold coin and there is a photo of a woman on the gold coin.

What drove the gold price in 2025 - and what comes next - What drove the gold price in 2025 - and what comes next

Gold prices saw a steady climb in 2025, fuelled by strong demand and shifting economic conditions. Central banks played a major role, with countries like China, Turkey, and Poland leading the way in purchases. Meanwhile, investors in Germany continued to favour gold as a reliable asset, reflecting its enduring appeal in uncertain times.

Throughout 2025, gold prices were shaped by several key factors. Real interest rate movements, a softer US dollar, and ongoing geopolitical tensions kept demand high. Central banks, in particular, boosted their reserves significantly, accounting for over a fifth of global gold demand. Turkey alone added nearly 41 tons by October, pushing its total holdings past 800 tons.

Investors also drove the market, with Asian buyers contributing heavily. In Germany, 37 percent of local investors held or traded gold in 2024, reinforcing its reputation as a safe haven. Geopolitical risks—such as conflicts and trade disputes—further strengthened this trend, as buyers sought stability. On the supply side, mining output remained steady, but high costs limited new projects. Instead, recycled gold became a critical source, especially in Germany, where nearly all refined gold now comes from recycling. With prices staying high, some consumers and jewellers turned to alternatives like platinum. Looking ahead, experts predict stable or rising prices in 2026. Lower interest rates, persistent geopolitical uncertainties, and continued central bank demand are all expected to support the market.

The gold market in 2025 was marked by robust demand from central banks and investors alike. Recycled gold filled gaps in supply, while high prices pushed some buyers toward other metals. With economic and political risks lingering, gold’s role as a secure asset seems set to continue into 2026.