Investors are closely watching the rise of the gold market as record prices, intensive buying by central banks, and new discoveries are reshaping the mining landscape in 2025.
The rise of the gold market and record demand from central banks
The gold market extended its historic rise in 2025 to trade above $4,300 an ounce on December 16, achieving its strongest annual performance in decades with gains exceeding 60% since the beginning of the year. Furthermore, this movement has increased interest from institutional investors and sovereign buyers seeking to diversify away from the US dollar.
Central banks have increased their gold purchases by 28% in the third quarter alone, having accumulated 634 tons since the beginning of the year as emerging markets accelerate diversification away from dollar reserves. This rapid accumulation of reserves reinforces the metal's role as a strategic asset and provides strong support for prices.
JP Morgan's research expects the average gold price to reach $3,675 per ounce by the fourth quarter of 2025 and rise to around $4,000 by mid-2026, supported by ongoing institutional demand averaging 710 tons per quarter. However, ongoing geopolitical risks and uncertainty about inflation may further extend the current cycle.
Global central bank gold holdings reached 36,359 tons as of September 2025, with Poland, Kazakhstan, and Brazil leading purchases since the beginning of the year. These gold purchases by central banks create structural support for prices as strategic accumulation accelerates at the fastest pace in modern history.$BTC #BinancehodlerSOMI
