There are many Global events which have led to the rise of gold prices in recent times. It’s crucial to consider the different elements that affect gold prices, particularly when thinking about investments. Throughout 2025, global events are continuing to significantly influence these prices.
Keeping informed about geopolitical tensions, shifts in central bank policies, and worldwide crises is key to both understanding and anticipating changes in the price of gold. These factors contribute to market volatility and impact how investors see gold as a secure asset. The following are the events that led to the rise in gold prices.
- War
- Inflation
- Global Events
- Investment & Technology
- Dollar weakens Gold price rise
- War
The war between Russia and Ukraine has led to the increase of gold prices. It is observed that the price of gold generally increases during periods of warfare and geopolitical instability, as it is regarded as a secure asset for preserving wealth in times of market uncertainty.
Considering the current geopolitical climate, we wanted to share a thought on investment diversification. Historically, periods of uncertainty increase demand for gold, with some investors viewing physical gold like coins as a safe haven.
You might find purchasing a 1 gram gold coin online worthwhile as an accessible way to invest in precious metals. Gold has historically been a stable asset, especially during turbulent times, and could be a prudent portfolio addition.
- Inflation
Gold is frequently viewed as a hedge against inflation, and historically, its price has generally shown a tendency to increase during inflationary periods.
It’s important to note, however, that this correlation isn’t always reliable. Various other economic factors can also play a significant role in shaping gold prices.
Consequently, while gold can serve as a component within a well-rounded investment portfolio, relying on it exclusively for inflation protection without considering the broader economic landscape may not be the most prudent approach.
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- Global Events
Global events such as Donald Trump’s trade tariffs and the ongoing Russia Ukraine war have continuously kept the gold price rising. Gold tends to see increased demand when there is instability in the global economy or geopolitical landscape.
Conversely, periods of economic stability and low geopolitical risk typically result in decreased demand for gold, which can then lead to price declines.
- Investment & Technology
There have been some interesting shifts in the UAE gold market recently. It seems that the increasing adoption of technology is having a significant impact, primarily by making the market more accessible and efficient for participants.
This move towards integrating traditional investment methods with digital innovations appears to be attracting a broader spectrum of investors. Specifically, we are noticing a growing interest from younger individuals who are more comfortable using digital platforms for their trading and investment activities. This trend suggests a potential evolution in how gold is perceived and traded in the region.
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- Dollar Weakens gold price rises
A weaker dollar and geopolitical situations cause inflation in the gold prices. The present US trade war with the countries and Trade politics between China and US have directly effected the weakening of the Dollar.
Gold is widely considered a safe haven for investment, particularly during times of economic and geopolitical instability. Interestingly, bullion prices reached an all-time high of $3,500.05 just in April 2025.
Take away
Current economic, political, and market factors are causing gold prices to rise. Global situations in the year 2025 are impacting the gold market, including gold coins/bars. Understanding the influence of geopolitical tensions, economic policies, and environmental factors on gold prices can inform your investment decisions. This knowledge can help you invest favorably in assets such as a 1-gram gold coin online or 24k gold coins in Dubai.
About the author
Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.
