March 26, 2025
Tangible Assets

Soaring Global Demand for Precious Metals Pushes Gold Near $3,000 per Ounce


Weitersfelden, March 24, 2025 (GLOBE NEWSWIRE) — Weitersfelden, Upper Austria –

MetaMetals, a European precious metals manufacturer and brand of Ardor Strategy, announces that the global precious metals market is experiencing a remarkable surge, with gold prices reaching unprecedented levels. This trend underscores the metal’s enduring appeal as a safe-haven asset amid economic uncertainties and geopolitical tensions.

As of March 2025, gold prices have reached $2,923 per ounce, reflecting a significant increase over the past year. This surge is attributed to various factors, including heightened geopolitical tensions, economic uncertainties, and robust demand from both investors and central banks.

Central banks worldwide have played a crucial role in boosting gold demand. In 2024, they collectively added more than 1,000 metric tons to their reserves, marking the third successive year in which purchases exceeded 1,000 tons. Notably, the National Bank of Poland led acquisitions with an additional 89 tons of gold, aiming to diversify and strengthen its monetary stability.

China’s central bank has also been aggressively increasing its gold reserves, marking its fourth consecutive month of accumulation in February 2025, now holding over 73 million fine troy ounces. This strategic move is seen as part of China’s broader efforts to reduce reliance on the U.S. dollar, hedge against inflation, and stabilize the renminbi. “Gold remains a cornerstone of national financial security, with countries seeking to diversify their reserves amid global economic shifts,” says Rainer Stellnberger, Co-Founder and precious metals analyst at MetaMetals. Additionally, nations like India, Turkey, and Russia have continued expanding their gold holdings, reinforcing the metal’s status as a critical component of sovereign wealth.

Beyond central banks, private investors are increasingly turning to gold, silver, and other precious metals like platinum, rhodium and osmium as hedges against market volatility, currency devaluation, and systemic financial risk. The ongoing U.S.-China trade tensions, fears of stagflation, and uncertainty over a potential global economic slowdown have prompted investors to seek refuge in tangible assets and so-called safe-haven investments.

The industrial sector’s demand for most precious metals—particularly silver and platinum—has remained robust, while slightly declining for others, like palladium and rhodium.

However, supply-side challenges persist. Gold and silver mining outputs have struggled to keep pace with surging demand, leading to tighter markets and upward price pressure. Environmental regulations, mine depletion, and geopolitical instability in major mining regions such as South Africa and Latin America have exacerbated these constraints. With global production growth lagging, analysts anticipate prolonged supply deficits in the precious metals industry.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *