A 26–28% gain in gold’s price so far in 2025 largely reflects purchases by global reserve managers and long-term funds. Their sustained, deliberate buying supports gold’s strength.
Gold has climbed more than 25% in 2025, trading near $3,300–3,400 per ounce. That rise responds not to speculative shifts but to central bank gold purchases and long-term investors adding gold to reserves and portfolios for financial security and diversification.
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Conviction Buyers Shape the Trend
Gold rose about 27% already this year, with prices hovering around $3,320 per ounce, as central banks and institutions continued purchasing steadily. Every 100 tonnes they add tends to lift gold by approximately 1.7%.
A survey by the World Gold Council finds that 95% of central bank reserve managers plan to add gold over the next 12 months, up from 81% a year earlier.
Over the past three years, central banks have bought more than 1,000 tonnes annually, up from previous averages of 400–500 tonnes. Goldman Sachs expects prices to reach $3,700 by end-2025 and $4,000 by mid-2026 if demand holds.
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Reserves Trends and ETF Flows
In Q1 2025, central banks added 244 tonnes of gold, while gold ETF investment demand more than doubled year-on-year to 552 tonnes. Global ETF inflows totaled about $30 billion so far in 2025, adding 322 tonnes to holdings.
UBS projects demand will reach nearly 600 tonnes in 2025, the highest since 2011. Survey data also shows that 76% of central banks expect to hold less U.S. dollars in reserves over the next five years, signaling further shift toward gold.
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Conclusion
Gold’s upward trajectory reflects deliberate accumulation by institutions that value long-term preservation and diversification, not short-term sentiment.
With central banks and strategic investors committing steadily, gold’s bullish case remains compelling, even if markets face volatility or changing interest-rate expectations.
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