Gold demand rises amid fears of US recession

The stock market decline and rising investor concerns about a potential US recession are driving demand for gold. Additionally, global economic instability is enhancing gold's appeal as a safe-haven asset, according to Kitco News.

The shift in market participants' sentiment toward gold is already evident. Since the start of 2025, investor interest in bullion has increased by 10%.

In January, net cash inflows into US gold ETFs reached $1.5 billion and just under $8 billion in February. This marks the highest monthly total since March 2022. According to Kitco News, with worsening US economic data and escalating trade tensions, gold is likely to continue its upward trend.

Meanwhile, market participants' interest in silver declined by 13% in the last week of February. Sales of silver coins in the US have dropped significantly in 2025. The main driver of this decline is the increase in silver prices, which have risen over 37% year-over-year, as reported by Kitco.