Gold Soars as ETFs, Tokens, China Drive Demand

Gold prices have reached record highs in 2024 and 2025, driven by a weakening US dollar, macroeconomic uncertainty, and escalating geopolitical tensions following new US trade tariffs. While central bank gold buying has slowed, investor demand through gold-backed ETFs and tokenized gold has surged, with tokenized gold minting and market cap hitting three-year highs. Tokenized gold is favored for its direct redeemability and use in DeFi applications. China's government and retail investors are key drivers of the global gold market, maintaining strong bar and coin purchases despite a decline in jewelry demand. Experts also note that silver remains undervalued, offering a possible trading opportunity. Gold-backed cryptocurrencies and tokenized assets are increasingly viewed as attractive safe havens and potential alternatives to fiat-backed stablecoins.