Why Gold ETFs Are Rallying in 2025 – Geopolitical Risks & Central Bank Strategies
Geopolitical Turmoil Sends Gold to New Highs
Gold is once again proving its safe-haven strength, trading firmly above $3,420 per ounce as conflicts in the Middle East escalate. With central bank decisions looming and potential U.S. policy shifts on the horizon, investors are turning to gold, not just as a short-term hedge, but as a long-term store of value.
Central Banks Double Down on Gold
According to the European Central Bank, gold now accounts for 20% of global official reserves—its highest share in decades, even overtaking the euro. This shift is being led by emerging markets like China, India, and Turkey, which are actively reducing their exposure to dollar-based financial systems and mitigating geopolitical risk.
This wave of institutional demand is creating a durable floor for gold, supporting prices even during periods of relative market calm.
Gold Demand Broadens Amid Policy and Market Risks
Beyond geopolitics, gold's appeal is growing on multiple fronts. With the Federal Reserve hinting at rate cuts and the potential return of U.S. tariffs under renewed political leadership, investors are leaning on gold for more than just inflation protection.
Today, gold plays multiple roles:
A hedge against currency volatility
A buffer against financial system shocks
A neutral reserve in a fractured global trade landscape
Together, these forces suggest gold's momentum isn't just reactionary—it may be structural, marking its return as a strategic portfolio cornerstone.
Canadian Gold ETFs Deliver Strong Returns
The bullish environment has propelled Canadian gold-focused ETFs to standout performance in 2024:
Top Performers (YTD):
Global X Gold Producers ETF (GLDX): +62.7%
iShares Global Gold ETF (XGD): +52.8%
BMO Junior Gold ETF (ZJG): +51.9%
Bullion ETFs Show Steady Gains:
iShares Gold Bullion ETF (CGL): +30.0%
BMO Gold Bullion ETF (ZGLD): +24.3%
Recent weekly performance remains strong, with GLDX and XGD gaining over 4% as tensions persist. This consistent outperformance across both miner and bullion ETFs demonstrates gold's broad-based strength in current markets.
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Why Gold ETFs Are Rallying in 2025 – Geopolitical Risks & Central Bank Strategies
Geopolitical Turmoil Sends Gold to New Highs Gold is once again proving its safe-haven strength, trading firmly above $3,420 per ounce as conflicts in the Middle East escalate. With central bank decisions looming and potential U.S. policy shifts on the horizon, investors are turning to gold, not just as a short-term hedge, but as a long-term store of value. Central Banks Double Down on Gold According to the European Central Bank, gold now accounts for 20% of global official reserves—its highest share in decades, even overtaking the euro. This shift is being led by emerging markets like China, India, and Turkey, which are actively reducing their exposure to dollar-based financial systems and mitigating geopolitical risk. This wave of institutional demand is creating a durable floor for gold, supporting prices even during periods of relative market calm. Gold Demand Broadens Amid Policy and Market Risks Beyond geopolitics, gold's appeal is growing on multiple fronts. With the Federal Reserve hinting at rate cuts and the potential return of U.S. tariffs under renewed political leadership, investors are leaning on gold for more than just inflation protection. Today, gold plays multiple roles: A hedge against currency volatility A buffer against financial system shocks A neutral reserve in a fractured global trade landscape Together, these forces suggest gold's momentum isn't just reactionary—it may be structural, marking its return as a strategic portfolio cornerstone. Canadian Gold ETFs Deliver Strong Returns The bullish environment has propelled Canadian gold-focused ETFs to standout performance in 2024: Top Performers (YTD): Global X Gold Producers ETF (GLDX): +62.7% iShares Global Gold ETF (XGD): +52.8% BMO Junior Gold ETF (ZJG): +51.9% Bullion ETFs Show Steady Gains: iShares Gold Bullion ETF (CGL): +30.0% BMO Gold Bullion ETF (ZGLD): +24.3% Recent weekly performance remains strong, with GLDX and XGD gaining over 4% as tensions persist. This consistent outperformance across both miner and bullion ETFs demonstrates gold's broad-based strength in current markets. Group Data Funds Specific Data
