The year 2025 has become a carnival year for gold. On December 22, spot gold finally crossed the $4400 per ounce threshold, with an annual increase nearing 68%—this is not just a numerical breakthrough, but a sign of the entire precious metals market completing its value reassessment.

You ask why gold can rise so fiercely? Simply put, it's two words: expectations. The market is betting that the Federal Reserve will cut interest rates in 2026. Although U.S. economic data hasn't provided a clear signal for easing, traders are already positioning themselves for two rate cuts. What does this mean for gold? The pressure from interest rates has weakened. As a non-yielding asset, gold becomes a cost-effective trade once interest rates decline significantly, especially in the face of currency depreciation risks.

But the expectation of interest rate cuts is only half of the story. The other half comes from the geopolitical fire: the US oil blockade against Venezuela, the spread of the Russia-Ukraine conflict to the energy sector, and the undercurrents in the Middle East... These uncertainties have made global capital eager to find a safe haven, and gold is naturally that "safe harbor." When the demand for hedging collides with expectations of liquidity easing, gold becomes the consensus choice for funds.

Interestingly, gold is not fighting alone. Silver prices have doubled, and platinum has surpassed $2000/oz for the first time since 2008, with the entire precious metals sector celebrating collectively. What does this indicate? The market's demand for hard asset allocation is spreading, extending from a single focus on gold to a full range of categories. From the details of the funding side, gold ETFs have seen inflows for five consecutive weeks, with holdings climbing every month, and central banks continue to increase their positions... All these signs tell the same story: global institutional investors and central banks are voting with real gold and silver, supporting precious metals as the core of long-term asset allocation.