Gold's Volatile Rise: Central Banks Drive Demand Amid Global Uncertainty

Gold had its best year since 1979 in 2025, with dozens of successive records. The metal surpassed 5,500 dollars per ounce early in 2026 before falling sharply in spring.

Despite this volatility, gold remains the benchmark safe haven for investors. Record demand was seen in 2025, and central banks have been purchasing massive amounts of the metal to reduce their dependence on the dollar and hold a reserve that can neither be frozen nor sanctioned.

The numbers are staggering: China now holds more than 2,300 tonnes and has been adding regularly for years. Poland openly targets 700 tonnes, while Kazakhstan, Serbia, UAE, and others have also joined in recent purchases.