Gold Glides Toward New Peaks as Middle-East Strife Lifts Safe-Haven Demand

Gold’s relentless climb in 2025 shows no sign of slowing. Spot prices burst above $3,400 this week—within striking distance of April’s record near $3,500—after renewed hostilities in the Middle East rattled global markets.

Oil spiked 7 % on the news, equities sold off hard, and investors once again reached for the oldest shelter in finance.

Not Just a War Trade

Geopolitics is only half the story. The European Central Bank’s latest reserve survey reveals that last year central banks bought so much bullion that gold leap-frogged the euro to become the world’s #2 reserve asset, trailing only the U.S. dollar. Official sector purchases have topped 1,000 tonnes three years running—double the pace of the 2010s—as policymakers worry about currency sanctions and inflation.

Numbers Tell the Tale

• +30 % year-to-date performance makes gold one of 2025’s best-returning major assets.
• 20 % share of global reserves now sits in bullion, versus 16 % for the euro.
• 5 % price gain over the past month alone as spot rebounded from mid-May lows near $3,120.

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Market Fallout

Surging energy costs are set to feed fresh inflation pressure, a backdrop that historically boosts gold’s appeal. While Bitcoin steadied above $105 k, its haven credentials remain untested relative to the yellow metal. Long-time gold advocate Peter Schiff sees the miners’ index at its highest level since 2012 as “confirmation the bull market just shifted into overdrive.”

What to Watch

With central-bank buying undiminished and geopolitical risk elevated, traders now eye a decisive break to new highs. If oil remains elevated and inflation expectations rise, bullion’s 2025 rally could still have plenty of runway—cementing its comeback as the reserve asset of choice in an uncertain world.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.