Gold’s Record Rally in 2025: A Historic Surge
In 2025, gold surged by an astounding 65%, marking one of the most explosive rallies in modern market history. This was the strongest performance in nearly 50 years. Investors, both retail and institutional, flocked to gold, with central banks playing a key role in driving the price up. While some caution against expecting a repeat in 2026, many still believe in gold’s long-term appeal.
Falling interest rates, rising geopolitical tensions, and high fiscal deficits fueled gold’s rise. These factors helped the metal surpass an inflation-adjusted high untouched since 1980. Although 2026 may see slower growth, top money managers are still bullish on gold’s future. They point to the same drivers that boosted gold in 2025.
Bullish Outlook for Gold: Strong Fundamentals and Central Bank Support
Top money managers, handling trillions in assets, maintain their positive outlook for gold. Ian Samson, a portfolio manager at Fidelity International, is confident that gold will continue to rally in 2026. He attributes this to central bank purchases, falling interest rates, and increasing fiscal deficits. Samson believes these factors will keep gold’s price supported, even as the buying frenzy from October 2025 slows.
Gold has increasingly become an “anti-fiat” currency. Political instability and rising sovereign debts have made investors wary of major developed-market currencies. Mike Wilson, CIO at Morgan Stanley, sees gold’s rise as a warning about unsustainable government debt. He recommends allocating 20% of portfolios to real assets like gold as a hedge against inflation and fiat currency devaluation.
Darwei Kung of DWS Group has maintained a slightly larger-than-usual gold allocation, expecting modest price increases by year-end. He also sees short-term trading opportunities as gold responds to broader market forces.
Central Bank Buying: The Key Driver for 2026 Gains
Central bank buying will continue to be the key driver of gold’s price in 2026. Goldman Sachs predicts central banks will purchase around 80 tons of gold per month. This buying trend started after Russia’s foreign-exchange reserves were frozen in 2022, highlighting gold’s status as an asset that cannot be manipulated. Thomas Roderick from Trium Capital highlights China’s growing gold reserves as another important factor driving demand.
Gold’s role as a safe-haven asset has intensified, attracting significant interest from pension funds and institutional investors. Massimiliano Castelli from UBS Asset Management noted that some funds now allocate up to 5% of their portfolios to gold as a hedge against broader risks.
SuperMetalPrice Commentary:
Despite concerns about gold’s performance after a record year, the outlook for the precious metal in 2026 remains positive. Continued central bank buying, especially from emerging economies like China, will support gold prices. Gold’s role as a hedge against inflation and currency debasement will remain crucial for investors. As geopolitical tensions rise and fiscal deficits grow, gold will likely continue to serve as a safe-haven asset. For long-term investors, gold remains an attractive option for portfolio diversification and wealth preservation.
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