Gold prices have surged to $4,000 per ounce in 2025, driven by significant global economic factors. The Basel III regulatory reform in 2019 reclassified gold as a zero-risk-weight asset, reducing holding costs for banks and increasing demand. The 2022 Russia-Ukraine conflict accelerated de-dollarization, with over $300 billion in Russian reserves frozen, prompting central banks worldwide to boost gold holdings.
Additionally, the pandemic-induced monetary expansion eroded the dollar's purchasing power, enhancing gold's appeal as a hedge. Strategic reserve restructuring by countries like China, shifting from U.S. Treasuries to gold, has further fueled demand, with central bank gold purchases reaching unprecedented levels.
Gold Prices Hit $4,000 per Ounce Amid Global Economic Shifts
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