By bizn_fun 
It’s not just investors who have been buying up gold.
Last year, central banks added hundreds of tons of bullion to their reserves, according to the World Gold Council.
Central banks in China, Poland and Azerbaijian were among the leading buyers in 2025.
“There’s a very clear shift away from the US dollar, which is benefiting gold immensely,” said Kavalis.
The start of this year has seen gold’s rally but Frappell warns the “news-driven” market could also result in a fall in the price of gold.
“There’s got to be scope for unexpected news that actually might be positive for the world and not necessarily positive for gold,” he said.
But not everybody is buying gold for purely investment reasons.
In many cultures, the metal is purchased during festivals or given as a gift at celebrations such as weddings.
In India, the annual Diwali festival is believed to be an auspicious occasion to buy precious metals in order to bring on wealth and luck.
According to the US investment bank Morgan Stanley, Indian households held a staggering $3.8tn of gold, equivalent to 88.8% of the country’s GDP.
Neighbouring China is the world’s largest single consumer market for gold, with many believing that its purchase will bring fortune.
“We often see a seasonal uptick in demand around Chinese New Year, which we are seeing at the moment to an extent,” said Kavalis, referencing the upcoming Year of the Horse which begins in February.