Gold prices skyrocketed to a fresh all-time high in the Asia trading session, officially breaking above $3,400 per ounce for the first time in history. The relentless rally in the yellow metal comes amid soaring demand from global central banks, geopolitical uncertainty, and renewed weakness in the U.S. dollar. (Gold Is at a Record High. Why It Could Climb Even Higher?)
Spot gold surged past $3,400/oz, with futures following suit, reflecting aggressive buying from both institutional and sovereign players. The move marks yet another milestone in gold’s historic breakout in 2025 — and signals growing investor scepticism toward traditional fiat currencies, particularly the U.S. dollar.
China Leads the Charge
According to official data, China’s central bank added 5 tonnes of gold to its reserves in March — marking the fifth consecutive month of buying. This brings total reported holdings to a record 2,292 tonnes, now accounting for 6.5% of China’s total official reserve assets.
But the real story may be much bigger.
Goldman Sachs reports that China purchased as much as 50 tonnes of gold in February — nearly 10x higher than the official number.
Over the past 3 years, Chinese gold buying on the London OTC market has far outpaced public disclosures, suggesting Beijing is quietly building a financial shield against dollar exposure and preparing for a more fragmented global monetary system.
A Global Shift Away from the Dollar
Gold’s rise comes as the euro just hit its highest level against the U.S. dollar since November 2021, adding to broader dollar weakness. The U.S. Dollar Index (DXY) has been sliding amid rising interest in alternative reserve assets, including gold and select digital currencies.
Equities Feel the Pain
While gold rallies, stock futures are deep in the red.
- S&P 500 futures have dropped more than 250 points in under 5 trading days, erasing most of April’s gains.
- Nasdaq 100 futures are also sharply lower.
The market’s prior rally — built on optimism around a possible U.S.-Japan trade deal — has fizzled fast. With no deal in sight and risk-off sentiment returning, traders are flocking to safe havens like gold at a historic pace.
Market Context
The recent surge in gold is not just a reaction to one event — it reflects a broad realignment in investor priorities:
- Central banks are quietly de-dollarizing
- Inflation remains sticky across multiple economies
- Geopolitical risks — from trade wars to military flashpoints — are on the rise
- Investors are losing confidence in the stability of fiat currency reserves
Analysts now see potential for gold to climb even higher, especially if central banks continue bulk buying behind the scenes. With sovereign accumulation, dollar fragility, and market volatility all peaking at once, gold is reasserting itself as the world’s ultimate safe haven.
