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| Gold Prices |
Gold prices surged to record highs in 2025, driven by persistent political uncertainty and expectations of further US interest rate cuts. The focus keyphrase, gold price ascends, reflects the ongoing bullish trend fueled by central bank purchases and investment demand in key markets such as the US, UK, and global exchange-traded funds (ETFs).
Central Banks Drive Gold Price Ascends With Historic Purchases
Central bank demand remains the primary driver behind the gold price ascends, with net purchases surpassing 1,000 metric tons annually since 2022. Metals Focus data reveals that central banks plan to add an estimated 900 metric tons this year, doubling the 2016-2021 average of 457 tons. Meanwhile, the UK central bank demand rebounded strongly to 63 tons following seasonal dips, matching post-2022 levels. As a result, gold ETFs have also benefited, with holdings reaching 3,615.9 tons by June—the highest since August 2022. These purchases reflect a strategic move to secure gold amid geopolitical risks, particularly the ongoing Russia-Ukraine conflict.
US Interest Rate Cuts and Market Sentiment Sustain Gold Price Ascends
The recent Federal Reserve interest rate cut has bolstered the gold price ascends further. US gold futures rose 1.3% to $3,755.20 per ounce in New York trading. Analysts, including Kitco Metals’ Jim Wyckoff, highlight that expectations of additional Fed rate cuts this year continue to support gold prices. Meanwhile, investors are closely monitoring upcoming Fed communications, including Chair Jerome Powell’s speech and core personal consumption expenditure data. These factors contribute to the robust investment demand that keeps pushing gold prices upward despite economic uncertainties.
Silver Follows Gold Price Ascends With a 14-Year High
Silver prices also demonstrated strong performance, rising to $43.81 per ounce—a 14-year high. Silver’s year-to-date gain nears 50%, outpacing gold’s 41% increase. Market analysts suggest silver may have further upside potential, as the gold-silver ratio remains above its five-year average. Investors increasingly view silver as an attractive safe-haven alternative to gold, particularly amid sustained geopolitical instability and US monetary easing trends.
ScrapInsight Commentary
The gold price ascends reflects sustained central bank accumulation and US monetary easing, signaling continued safe-haven demand. As silver follows suit, both metals underscore their strategic importance amid global uncertainties. Recycling sectors should anticipate rising raw material values, while policy shifts may further incentivize circular economy initiatives.
