Gold has surged past $4,500 per ounce, hitting a fresh record as expectations of looser U.S. monetary policy and ongoing geopolitical tensions continue to drive demand for safe-haven assets. Prices are up over 70% year-to-date, marking the strongest annual performance since 1979.
How Investors Buy Gold
1. Spot Market
Large institutions typically buy gold directly from bullion banks, with prices set by real-time supply and demand.
London remains the most influential hub, anchored by the London Bullion Market Association, while China, India, the Middle East and the U.S. are also major centres.
2. Futures Market
Investors gain exposure via futures contracts, agreeing to buy or sell gold at a set price on a future date.
The world’s largest venue is COMEX, alongside the Shanghai Futures Exchange and the Tokyo Commodity Exchange.
3. Exchange-Traded Products (ETFs)
Gold ETFs offer exposure without physical delivery and have become a major source of demand.
Physically backed gold ETFs have seen $64 billion in inflows year-to-date, according to the World Gold Council.
4. Physical Bars and Coins
Retail investors continue to buy gold bars and coins through dealers, both online and in-store.
What’s Driving the Gold Market
- Investor sentiment: Safe-haven demand rises during periods of economic and geopolitical stress.
- U.S. dollar movements: Gold typically benefits when the dollar weakens.
- Monetary policy: Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold.
- Geopolitical risk: Trade tensions and global conflicts continue to support defensive positioning.
- Central-bank buying: Central banks remain aggressive buyers amid de-dollarisation trends. Global gold demand hit a record 1,313 tonnes in Q3 2025, while China has increased reserves for 13 consecutive months.
Bottom Line
Gold’s rally is no longer driven by a single factor. It reflects a convergence of monetary easing expectations, geopolitical risk, institutional flows and central-bank accumulation—a structural backdrop that continues to underpin prices even at record highs.