Gold update in Pakistan: Gold’s beast mode, 44% surge in nine months | The Express Tribune
Key Takeaways
- Gold has experienced a historic rally in 2025, surging approximately 44% year-to-date.
- The rally is driven by geopolitical uncertainty, aggressive central bank gold buying, and the decline of the US Dollar Index.
- Gold and US equities have hit record closes simultaneously six times in 2025, indicating a potential shift in global capital flows.
- Central bank accumulation is linked to de-dollarization strategies by emerging markets seeking alternatives to the US dollar.
- The US Dollar Index has dropped 10% in 2025, its steepest fall since 2003, mechanically supporting gold prices.
Gold has been on a historic rally over the last nine months, with prices increasing 44% year-to-date in 2025, stunning market watchers and leading to upward revisions of price forecasts by institutions like Goldman Sachs and JPMorgan. This surge, which analysts term "beast mode," is unusual because it is happening concurrently with the US stock market hitting fresh highs, an anomaly seen only twice between 1970 and 2023, suggesting a major shift in international monetary order. The primary drivers include persistent geopolitical risks from conflicts and US political changes, aggressive gold purchasing by central banks (especially in emerging markets) as part of a de-dollarization strategy, and a significant 10% drop in the US Dollar Index. Furthermore, strong inflows into gold-backed ETFs and sustained jewellery demand from India and China reflect growing skepticism towards fiat currencies. This dual rally of safe havens and risk assets defies historical patterns, drawing parallels only to the volatile 1970s.
