Why Gold Remains the World’s Most Trusted Asset

Gold continues to outshine other assets as global instability drives investors toward security. The metal, long seen as the ultimate hedge against volatility, is once again proving its strategic value. With central banks ramping up gold reserves and private investors seeking safe-haven exposure, demand rose 8% in Q2 2025, according to the World Gold Council.

The price of gold hovered at $2,048 per ounce last week, within striking distance of its all-time high. Analysts point to persistent inflation fears, US monetary policy uncertainty, and rising geopolitical tensions in Europe and Asia as core drivers.

Central Banks Lead the Charge

One of the most notable trends is the resurgence of sovereign gold buying. Nations including China, India, and Turkey have substantially increased their reserves, viewing gold as a hedge against potential dollar volatility and foreign policy tensions. Central banks purchased over 180 tonnes in the last quarter alone, the highest since 2019.

In parallel, ETF inflows have picked up as retail and institutional investors recalibrate portfolios in response to declining real yields and equity market turbulence.

Gold’s Forward Momentum

If geopolitical tensions continue and interest rates plateau or fall, gold could extend its rally into 2026. However, a stronger dollar or risk-on sentiment could create intermittent headwinds. Long-term, the metal remains a foundational element for portfolio hedging strategies.