Bitcoin News Today: Central Bank Gold Buying and Geopolitical Tensions Push Prices to $3,980

Gold prices climbed to $3,980 per ounce on October 25, 2025, reflecting a 0.69% intraday gain, driven by a confluence of geopolitical tensions, central bank demand, and evolving U.S.-China trade dynamics. The rally follows a volatile week marked by sharp corrections and renewed optimism over monetary policy easing, with analysts at Goldman Sachs and industry reports highlighting structural shifts in the gold market.

The surge in gold comes amid heightened geopolitical risks, including the recent Thailand-Cambodia ceasefire brokered under Malaysian Prime Minister Anwar Ibrahim's auspices. U.S. President Donald Trump, who has positioned himself as a mediator in the conflict, has drawn attention for his role in stabilizing regional tensions, a factor that analysts say indirectly supports safe-haven demand. Meanwhile, Indonesia, the world's largest Muslim-majority nation, has signaled its intent to leverage its diplomatic ties with Trump to expand influence in the Middle East, further complicating the global risk landscape.

Central bank activity remains a cornerstone of gold's ascent, with central bank purchases supporting the rally. China, in particular, has intensified its gold procurement efforts to reduce reliance on the U.S. dollar and bolster its monetary system. A Bloomberg investigation revealed a "global mining mafia" supplying China with gold at unprecedented rates, underscoring the nation's strategic focus on diversifying reserves. India and other emerging markets have also joined the buying spree, with central banks collectively purchasing over 1,000 tonnes of gold in 2024-the second-highest annual accumulation since 1950.

The U.S. Federal Reserve's policy trajectory continues to shape investor sentiment. Despite a 55% annual gain in gold prices, the Fed's dual mandate of curbing inflation and supporting employment has created uncertainty. Trump's recent threats of fresh tariffs on China triggered a cryptocurrency selloff but later reversed as Bitcoin rose 1.6% after the White House confirmed a Trump-Xi Jinping meeting in South Korea on October 30. The summit, framed as a potential de-escalation of trade tensions, has fueled speculation about reduced demand for safe-haven assets, though analysts caution that geopolitical risks remain elevated.

Gold's technical outlook remains mixed. After hitting an all-time high of $4,381.52 per ounce in early October, prices corrected sharply, fell over 3.3% weekly amid profit-taking and ETF outflows. However, Goldman Sachs revised its 2026 gold price target upward, citing weak dollar trends and persistent inflationary pressures. The bank noted that gold's inverse relationship with bond yields and the dollar provides a structural tailwind, even as near-term volatility persists.

Industry players are also adapting to the shifting landscape. New Gold Inc. reported third-quarter 2025 results showing record production at its Rainy River mine, with revenue surpassing analyst expectations. The company's free cash flow of $183 million for the quarter highlights the sector's resilience amid price swings. Similarly, Xtra-Gold Resources capitalized on higher gold prices, generating $2.27 million in net income for Q3 2025 and emphasizing its low-cost exploration model in Ghana's Kibi Gold Belt.

Looking ahead, the gold market faces a balancing act. Post-Diwali demand in India-a key consumer-has weakened, while a stronger U.S. dollar threatens to curb international buying. However, analysts at Reuters and the London Bullion Market Association (LBMA) forecast gold reaching $4,980 per ounce by 2026, driven by central bank purchases and geopolitical uncertainties.

Rebecca Tan - The Washington Post (Rebecca Tan)