Gold’s Bull Run Strengthens on Back of Global Instability
With markets rattled by rising geopolitical friction—particularly between the U.S. and China—investors are rapidly shifting their focus to safe-haven assets.
Gold, long regarded as a refuge in turbulent times, is once again in the spotlight, and analysts at Citi now believe the metal could soar to $3,500 in the coming months.
This bullish forecast follows a period of escalating tariffs and growing fears of an all-out trade conflict. The dollar’s recent weakness, combined with surging interest in alternative stores of value, has fueled renewed appetite for gold. Citi has revised its short-term outlook, pointing to strong buying activity from Chinese insurers and intensifying global uncertainty as the primary drivers.
The bank also warned that physical gold supply is tightening. As demand accelerates and stockholders hold off on selling, prices may need to climb further to unlock liquidity in the market.
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Beijing’s strategy plays a key role in this scenario. China’s broader push to reduce reliance on the U.S. dollar has included ramping up gold reserves—often in tandem with its BRICS partners. A recent green light from Chinese regulators now allows a group of insurers to allocate part of their portfolios to gold, which could inject over 250 metric tons of additional annual demand.
With these dynamics converging—policy shifts, macroeconomic volatility, and physical scarcity—gold’s momentum appears far from over. Whether it can break new records in the near future may depend on just how deep the fractures in the global financial landscape go.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
