Gold prices hit record highs in early 2025, rising nearly 10% to $2,886 per ounce

Gold prices have surged to record highs in early 2025, reaching $2,886 per ounce, driven by market volatility and increased central bank purchases, especially from China. This marks a nearly 10% rise since the start of the year. Central banks globally are accumulating gold, with purchases exceeding 1,000 tonnes for the third consecutive year. China, India, and Poland are among the major buyers, reflecting concerns over U.S. dollar dominance and geopolitical tensions. Analysts have raised their gold price forecasts, with some predicting prices could reach $3,000 per ounce. This optimism is fueled by ongoing trade wars, inflation fears, and steady demand from investors seeking safe-haven assets.