Gold Surges Over 60% in 2025, Outpaces Bitcoin

In 2025, gold has surged to record highs, delivering returns exceeding 60 percent and outpacing other assets like Bitcoin amid heightened global economic uncertainty. The precious metal, which reached peaks near $4,400 per ounce by October before stabilizing around $4,335, has drawn steady investor interest as a hedge against inflation, rising debt levels, and a weakening U.S. dollar.

The rally reflects a confluence of factors driving demand. Central banks worldwide continued aggressive gold purchases throughout the year, adding tens of tonnes monthly, with net acquisitions peaking above 70 tonnes in late 2024 and resuming strongly in mid- to late 2025, according to data from the World Gold Council. Geopolitical tensions, expectations of interest rate cuts, and persistent inflation risks have bolstered the metal's appeal as a safe-haven asset. Exchange-traded funds tracking gold saw consistent inflows, contrasting with outflows from Bitcoin funds. On the domestic front in India, 24-carat gold traded at 1,33,860 rupees per 10 grams in Mumbai, excluding taxes and making charges, while silver, which has posted its strongest year since 1971 with gains surpassing gold's, reached...