$XAU Global gold prices have jumped sharply in 2025, rising more than 64% so far this year—the strongest annual gain since 1979. According to PANews, this surge has become a major topic at the World Economic Forum, where experts are discussing the growing role of gold in central bank reserves, the shift away from the U.S. dollar, and questions around the Federal Reserve’s independence.
Ray Dalio, founder of Bridgewater Associates, noted that many central banks are increasingly favoring gold over U.S. dollar–based assets such as Treasury bonds. As a result, the structure of global gold demand is undergoing a significant transformation.
Figures from the International Monetary Fund show that the U.S. dollar’s share in global foreign exchange reserves has dropped below 60%, the lowest level seen in decades. Meanwhile, a survey by the World Gold Council found that 95% of central banks intend to keep buying gold. Markets view this trend as a defensive move, with central banks turning to physical assets like gold—which carry no sovereign credit risk—to protect themselves from long-term concerns about the reliability of the U.S. dollar.
