After months of sideways trading, the gold market finally broke through on Tuesday, surpassing the $3,500 per ounce mark to hit a new all-time high. The rally continued on Wednesday, bringing the year-to-date gain to 35%. This surge is primarily driven by increased purchases from both investors and central banks seeking to hedge against political uncertainty and U.S. debt concerns.
In a report published on Thursday, Daan Struyven, co-head of global commodities research at Goldman Sachs, warned that if U.S. President Donald Trump continues to pressure the Federal Reserve, it could severely undermine confidence in U.S. dollar-denominated assets and erode the dollar’s status as the world’s reserve currency. He stated that if just 1% of privately held funds in the U.S. Treasury market were to shift into gold, the price of gold could approach $5,000 per ounce. The reasoning behind this is that Trump has been pushing for faster interest rate cuts. If the administration succeeds in politicizing the Fed, monetary easing could become even more aggressive.
Earlier this year, J.P. Morgan offered an even more bullish forecast, suggesting that under current macroeconomic conditions, even a small shift of funds away from U.S. assets could push gold to $6,000 per ounce.
1911 Gold Corporation（TSXV: AUMB）（OTC: AUMBF）is located in the heart of the world-class Rice Lake gold district within the West Uchi greenstone belt. The Company holds a dominant land position with over 61,647 Hectares, a permitted milling facility, three underground mines with a combined resource of 1.1 million ounces in mineral resources, and significant upside surface exploration potential. The Company is currently drilling several new target areas on surface, within the mine footprint that extend at depth, and expects to commence underground exploration in the coming months. With over $300M in infrastructure at the mine site and no royalties or debt, the Company is well positioned to advance this project back to production, supported by several large shareholders, including Eric Sprott who holds over 17 per cent.
This is no longer just a prediction—it is already happening.
Newly released global currency reserve data for Q1 2025 shows that gold’s share of international reserves has surged, while the dominance of the U.S. dollar continues to weaken. Specifically, although the dollar remains the largest reserve currency with a 43.79% share, this represents a decline of 1.76 percentage points from the end of Q4 2024 (45.55%). In contrast, gold’s share rose by 2.96 percentage points to 24.16%, solidifying its position as the second-most held reserve asset.
Central banks are continuing to increase their gold holdings mainly because gold has become a safer asset compared to U.S. Treasury securities and a more stable and reliable option. Backed by these institutional players, gold has also achieved significant gains this year, consistently delivering higher returns than U.S. Treasuries, the S&P 500, the Nasdaq, and major cryptocurrencies including Bitcoin and Ethereum.
