Gold prices are primarily driven by the following multiple factors:

1. Geopolitical and Safe-Haven Demand Surge
Global geopolitical conflicts intensify (such as US-EU tariff disputes, Greenland tensions, Middle East and Eastern Europe situations), leading to increased market risk aversion. As a traditional "safe haven" asset, demand for gold as an allocation skyrockets. In 2025, spot gold prices hit a new high 50 times, soaring from $2,600 per ounce at the beginning of the year to $4,500 per ounce by year-end, and further breaking through $4,800 per ounce in January 2026, with an annual increase of over 13%.
2. Weakening of the US Dollar Credit System
1. Federal Reserve Policy Shift: Entering a rate-cutting cycle reduces the cost of holding gold, while a weakening dollar pushes gold prices higher.
2. Debt and Inflation Pressures: US federal debt surpasses $38 trillion, and excessive money issuance has led to declining confidence in dollar assets, highlighting gold's "non-sovereign asset" attribute.
3. Central Bank Gold Purchases: Central banks worldwide accelerate reserve diversification, with continuous gold purchases exceeding 1,000 tons for three consecutive years from 2022 to 2024. Although the growth slowed in 2025, they remain important marginal buyers, and gold's share in foreign exchange reserves continues to rise.
3. Economic Uncertainty and Structural Demand
1. Macroeconomic Risks: Global economic growth expectations are under pressure, compounded by trade frictions and supply chain restructuring, prompting investors to turn to gold for risk hedging.
2. Growth in Technological Demand: Expansion of AI industry drives demand for precious metals, with prices of silver, platinum, and others rising in tandem. As a sector leader, gold's valuation increases.
3. Innovation in Investment Tools: The scale of gold ETFs surges (SPDR holdings increase by 24.9% year-over-year), and tokenized gold stablecoins lower investment barriers, continuously attracting capital inflows.