The 2025 gold market can be described as crazy — the full-year increase exceeded 70%, marking the most aggressive rally in 47 years since the 1979 oil crisis. By the end of the year, spot gold nearly reached $4,600 per ounce. On January 2, 2026, it opened sharply higher and continued its frenzy, soaring $55 in a single day to directly break through $4,370 per ounce, a 1.27% increase. The London gold price stood at $4,395.81 per ounce, up 1.10% intraday. The entire precious metals sector followed suit, with spot silver rising over 3%, and platinum and palladium both increasing by more than 2%, fueling market enthusiasm.

Behind this super bull market are actually four driving factors:

**Risk aversion sentiment explodes.** Ongoing geopolitical conflicts, the US tariff wars disrupting global trade, and sluggish European economies all pile up uncertainties. Investors desperately pour money into gold. In the first three quarters of 2025, global gold demand surged to 3,640 tons, a record high, a 41% year-on-year increase. China’s demand for gold coins, bars, and ETFs was a major driver.

**The dollar’s credibility is collapsing.** The US is piling up debt, monetary policy is unpredictable, with quantitative easing and tightening causing market chaos, and assets of other countries are frozen at times. These operations have severely weakened the dollar’s credibility. In global central bank foreign exchange reserves, the dollar’s share has fallen to around 58%, while gold reserves have risen to 20%, making it the second-largest reserve asset worldwide.

**Central banks are aggressively buying.** Countries are eager to reduce dollar risk and diversify reserves. For three consecutive years, official gold purchases have exceeded 1,000 tons, making central bank gold buying a major market driver.