Global Uncertainty & Weak Dollar Drive Gold Rush, Akshaya Tritiya Sparks Festive Buying Boom

Mumbai: In 2025, gold has become one of the most popular investment choices. Investors around the world are turning to gold as a safe asset. Ongoing global conflicts, such as US-China tensions and unrest in the Middle East, are making people nervous. During uncertain times, gold is seen as a secure and stable place to store value.

Fear of Economic Slowdown

Major economies like the US, Germany, and China are showing signs of slowing down. Many experts fear a recession or even stagflation—a situation where prices keep rising but growth stays weak. Even though central banks raised interest rates earlier, inflation is still high. This is making gold more attractive, as it helps protect people’s money from losing value.

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Central Banks Buy More Gold

Governments and central banks are also buying large amounts of gold. Countries like China, Russia, and India want to reduce their reliance on the US dollar. In fact, 2024 saw record-breaking gold purchases by central banks, and that trend has continued in 2025. This large-scale buying has added more pressure on gold prices to rise.

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Weak Dollar Pushes Demand

The US dollar is weakening because many expect the Federal Reserve to cut interest rates this year. A weaker dollar makes gold cheaper for international buyers. Plus, when real interest rates are low, investors prefer gold, since it holds value even though it doesn’t earn interest.

De-Dollarisation and Financial Jitters

Some countries are moving away from the US dollar in global trade and are turning to gold as a safer alternative. Also, minor banking issues in recent years have made some investors cautious, pushing them toward gold as a more stable investment.

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Limited Supply, High Demand

Gold mining levels haven’t increased much, while global demand keeps rising. This tight supply has created a supply-demand imbalance. Traders are also placing large bets on gold through futures and options, which has added to the price rally.

Akshaya Tritiya Adds Festive Spark

In India, Akshaya Tritiya is seen as a lucky time to buy gold. Families traditionally invest in gold on this day for prosperity. In 2025, this festival is adding a fresh wave of demand, helping push gold prices even higher.