Overview

• Spot prices briefly reached about $4,040 per ounce on Oct. 10, capping a year‑to‑date rise exceeding 50% to a new high.
• A softer U.S. dollar and safe‑haven demand tied to geopolitical tensions, shutdown worries in Washington and tariff rhetoric helped propel the move.
• Record purchases by central banks—led by China and India diversifying reserves and keeping more bullion onshore—are cited as a structural driver.
• China has expanded local vaulting and custody and is encouraging foreign reserve storage in Hong Kong and Shanghai, reinforcing de‑dollarization efforts and yuan ambitions.
• Investor interest has broadened, with physically backed gold ETFs adding 510 tonnes over the past year, though some strategists warn the rally could see a correction.