Introduction
Gold has always been more than just a precious metal—it’s a symbol of wealth, security, and stability. But in the last few years, gold prices have risen significantly, hitting multiple record highs. From pandemic shocks to central bank buying sprees, many factors have shaped this golden rally. In this article, we’ll explore the timeline of rising gold prices, the key drivers behind the surge, and what it means for investors, jewellers, and everyday buyers.
The Gold Price Timeline (2020–2025)
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2020 – The Pandemic Boost
As COVID-19 disrupted global economies, investors rushed to safe-haven assets like gold. Prices surged past $2,000/oz for the first time in history. -
2021–2022 – Inflation and Uncertainty
Inflation rates spiked across major economies. Even as interest rates rose, gold remained attractive as a hedge against economic uncertainty. -
2023–2024 – Central Banks Step In
Central banks around the world started buying gold aggressively to diversify reserves away from the U.S. dollar. In 2024, central bank purchases crossed 1,000 tonnes—one of the largest annual totals in modern history. -
2025 – Record Highs Again
By mid and late 2025, gold broke past $3,800/oz, driven by rate-cut expectations, a softer U.S. dollar, and continued investor and institutional demand.
Why Are Gold Prices Rising?
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Central Bank Buying
Central banks are adding record amounts of gold to their reserves, reducing supply in the open market and signaling confidence in gold’s long-term value. -
Inflation & Currency Weakness
With inflation still high and the U.S. dollar facing downward pressure, gold has become a more reliable store of value for investors globally. -
Geopolitical Tensions
From wars to trade conflicts, rising global uncertainty has made gold a go-to safe haven. -
Investment Demand via ETFs
Exchange-Traded Funds (ETFs) that track gold have seen strong inflows, making it easier for both institutional and retail investors to participate. -
De-dollarization Trend
Countries looking to reduce reliance on the U.S. dollar have turned to gold as a neutral reserve asset, further boosting demand.
What This Means for You
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For Investors:
Gold continues to act as a hedge against inflation and financial instability. A portfolio allocation of 5–15% in gold is often recommended by financial advisors. -
For Jewellery Buyers:
Higher international prices mean retail jewellery is becoming more expensive. Buyers should compare making charges and watch currency exchange rates to get the best deal. -
For Jewellers & Retailers:
Rising gold costs can squeeze margins. Many jewellers hedge gold purchases to protect against volatility.
Conclusion
The surge in gold prices over the past few years is not just a temporary spike—it reflects deeper changes in global finance, currency strategies, and investor behavior. Whether you are an investor, a jeweller, or someone buying jewellery for personal use, understanding these trends will help you make smarter decisions.
