Gold prices remained steady on Monday, hovering just above $3300 per ounce, as global investors weighed rising US debt levels, fresh geopolitical risks, and the ongoing trend of de-dollarization.
After briefly dipping below $3300 in early trading, gold rebounded slightly as long-term US bond yields climbed ahead of this week’s critical Treasury auctions. The spotlight is on Thursday’s planned sale of $22 billion in 30-year bonds, seen as a crucial test of confidence in US fiscal stability.
Why Is Gold Holding Firm? Fiscal Risk and Policy Uncertainty
As borrowing costs rise, markets are signaling concern over Washington’s ballooning deficit and deepening political tensions. Following violent unrest in Los Angeles over President Trump’s immigration raids, analysts say confidence in US governance is eroding.
“If bond yields are rising because of fiscal concerns and political instability, the Dollar can weaken too,” said Shahab Jalinoos, head of G10 FX strategy at UBS. “This dynamic is more typical of emerging markets.”
China and Central Banks Continue to Drive Gold Demand
In a move reinforcing long-term de-dollarization, China’s central bank added another 2 tonnes of gold bullion to its reserves in May—the seventh monthly increase in a row. Official holdings now stand at 2,296 tonnes, though analysts widely believe the actual figure may be higher.
“The drivers behind global de-dollarization remain firmly in place,” noted Philip Newman, Managing Director at Metals Focus. “Gold continues to benefit from economic uncertainty and geopolitical tensions.”
Metals Focus forecasts that gold will average $3210 per ounce in 2025, a 35% rise year-on-year and the sixth consecutive record high.
Gold Outlook: Strong Support Amid Global Risk
Despite volatility, spot gold climbed 0.3% on Monday to touch $3321 per ounce, rebounding from Friday’s dip after unexpectedly strong US employment data.
“The fact that gold held above $3300 is more important than failing to break $3400,” said Bruce Ikemizu of the Japan Bullion Market Association. “Resilient demand—especially from central banks—remains a key support.”
Metals Focus estimates that central bank gold buying will again exceed 1,000 tonnes globally in 2025 for the fourth straight year, as more institutions diversify away from US Dollar-based assets.
Gold’s YTD Performance and the Bigger Picture
Gold has risen 26.8% year-to-date, with the average 2025 price hitting $3022. The precious metal reached an intraday peak of $3500 in April, driven by a sharp selloff in commodities and equities following President Trump’s announcement of sweeping new tariffs on what he called “Liberation Day.”
Precious Metals Snapshot: Silver, Platinum, Palladium Surge
Other precious metals are following gold’s upward momentum:
- Silver hit a 13-year high, rising 0.9% to $36.22 per ounce.
- Platinum surged 2.8% to $1201, extending last week’s 9% gain.
- Palladium rose 2.4% to $1075, driven by sustained demand from the auto industry.
Gold in Other Currencies
While gold held firm in Dollar terms, it slipped in other major currencies:
- Gold in GBP: Down 0.1% to £2443 per ounce
- Gold in EUR: Down 0.1% to €2902 per ounce
Both declines were linked to stronger Pound and Euro performance against the Dollar.
US Debt in the Spotlight: The “One Big Beautiful Bill”
Attention is now turning to President Trump’s sweeping new fiscal plan. The “One Big Beautiful Bill” proposes extended tax cuts, increased tax reliefs, reduced social spending, and a higher debt ceiling.
According to the Congressional Budget Office, this bill could add $2.4 trillion to the national debt over the next decade, fueling further uncertainty in global markets and increasing the appeal of gold as a safe-haven asset.
Final Thoughts: Is Gold Still a Buy in 2025? With de-dollarization gathering momentum, central banks continuing to stockpile reserves, and US fiscal policy under scrutiny, gold remains a powerful hedge against both inflation and systemic risk. Holding above $3300, the market signals that this is not just a speculative rally—it’s a structural shift in global confidence