In 2025, the global financial markets experienced severe fluctuations due to a shift towards interest rate cuts, escalating geopolitical tensions, and restructuring of technology capital. This year, funds were no longer blindly pursuing growth, but were instead pricing “institutional credibility, geopolitical risks, and cash flow stability”.
Ten annual international financial events of 2025 outlined how global capital quietly reshaped the existing landscape.
In October 2025, the international gold price broke through $4,000 per ounce for the first time, and by the end of the year, it even surged above $4,500 per ounce, with an annual increase of nearly seventy percent, becoming the most eye-catching asset class. Gold was once again seen as a core hedge against currency and institutional risks.
There was a widespread belief in the market that the U.S. dollar remained under pressure, and the tension in the Middle East escalated once again. Market attention was focused on the potential military conflict between Israel and Iran, further boosting the appeal of precious metals as a safe haven.
In December 2025, the Federal Reserve announced a reduction of 25 basis points in the target range for the federal funds rate to 3.5% to 3.75%, marking the third rate cut of the year and the sixth cut since the beginning of the easing cycle, with a cumulative decline of 75 basis points throughout the year. However, the Fed’s post-meeting signals about future policy direction were cautious and unclear.
Market analysts pointed out that major central banks globally were still in an easing cycle, but signs of a brake were becoming increasingly clear. While inflation was easing, economic momentum had not completely recovered, leading central banks around the world to shift from a synchronized easing to highly differentiated and cautious adjustments. Monetary policy was no longer just a stimulus tool but had become a risk management engineering to avoid misjudgments and financial imbalances.
Therefore, as most European and Japanese central banks trended towards cautious or even tightening stances, if the Fed continued to cut rates, it might find itself in a situation of “acting alone”, further reshaping global capital flows and exchange rate structures. With the attractiveness of the U.S. dollar decreasing, funds might start to reevaluate the risk premium of U.S. assets.
Overall, the year 2026 may not be lacking in liquidity in the market, but it lacks a credible long-term narrative. For investors, the key is not to bet on the next star asset, but to establish a diversified allocation that can withstand volatility, generate cash flow, and possess resilience against institutional risks. This is how the lessons from the “textbook-level market sample” of 2025 can be transformed into a survival guide for the coming years.