This scenario represents a classic example of asset rotation driven by changing market sentiment. During periods of strong economic confidence, investors naturally seek higher returns than what precious metals can provide. While gold offers stability, inflation protection and portfolio diversification, a thriving stock market’s potential returns often draw capital away from it. So what needs to happen for gold prices to fall again and make the price of gold more affordable for those who want to invest now? Gold is projected to grow further, given the uncertain economic environment that the world is in now. The unstable economic environment and a bearish outlook on equities are expected to keep gold prices higher in 2025.
- Meanwhile, traders have been pricing in the possibility of at least two 25 basis points interest rate cuts by the Federal Reserve in 2025.
- The chances of an additional quarter-point rate cut next month stand at more than 90%, according to the CME FedWatch Tool, a measure of market sentiment.
- Also, remember that historically, gold may underperform compared to the stock market.
- During these uncertain periods, investors may opt to sell off assets where they are sitting on significant gains to raise cash to offset losses in other markets.
- When gold prices dip like they are now, physical gold bullion becomes more attractive to long-term investors who want to buy the dip and hold onto tangible assets.
- Fresh grads from private unis are facing a tougher job hunt, even as starting pay nudges upward.
They are popular with large institutional investors – and their actions have helped to push up the price. “There’s anxiety about which way the market is going to go next, and when you get those emotions, ultimately it creates quite big trades.” Also on the table, rather more elegantly presented in a suede-lined tray, is a selection of gold coins and bars. The largest bar is about the size and thickness of a mobile phone. It is, in effect, gold scrap, which will be melted down and recycled.
Another kind of investment is booming, though – the price of gold. It hit an all-time high today, and analysts expect to keep on soaring. NPR financial correspondent Maria Aspan is here to help us understand why. Jon Mills, equity analyst for Morningstar, recently wrote on gold where he is supporting higher prices for gold. “Tailwinds include a flight to safety on falling share markets, tariff worries, geopolitical instability, a weaker US dollar, and rising inflation expectations.
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Key support lies at $2,530-$2,500, with further declines potentially targeting $2,400 and $2,300. On the upside, resistance at $2,900 could limit gains, with additional barriers at $3,000-$3,020 and $3,130 if Gold attempts a new record high. Statistics or past performance is not a guarantee of the future performance of the particular product you are considering. Stay in the loop—follow us on Instagram, Telegram, and Facebook for the latest on personal finance.
Barely 100 days into the Trump administration, the world is in economic turmoil. The price of bullion has increased from US$2,300 an ounce to about US$3,300 over the past year, and Toronto’s Rosenberg Research predicts it could hit US$6,000 within five years. The firm’s lively senior market strategist, CFA Bhawana Chhabra, explains why. Unsurprisingly, recent data has underpinned the buck and US bond yields, as well as weighed on the price of gold.
Also, remember that historically, gold may underperform compared to the stock market. Over the last 40 years, gold’s price has appreciated 510%, falling considerably short of the S&P 500’s 3,200% increase over the same period. And while gold has outperformed the S&P 500 so far in 2024, it may be better to consider gold as a store of value that can stabilize your portfolio rather than focusing solely on its returns. The commodity is also likely to climb as ETF investors increase their holdings in anticipation of interest rate cuts and amid growing recession concerns.
Sharon Wu, a senior writer with over a decade of experience, specializes in consumer-focused content covering home and finance topics such as insurance, investments, credit, debt, mortgages and home security. “If the dollar strengthens aggressively against other currencies, gold usually takes a hit because it becomes more expensive for foreign buyers,” says Jack Hanney, CEO and senior partner at Patriot Gold Group. Still, experts caution against putting all your eggs in one basket. Critics say gold isn’t always the inflation hedge many say it is — and that there are more efficient ways to protect against potential loss of capital, such as derivative-based investments. Confidence began to slide at the start of the year for both U.S. households and businesses due to fears of inflation and tariffs. Those worries seem to only be worsening, according to a preliminary survey released Friday by the University of Michigan.
This week’s US economic docket also features the Prelim Q1 GDP and the Personal Consumption Expenditure (PCE) Price questrade forex Index on Thursday and Friday, respectively. Silver is getting its moment in the spotlight—thanks to soaring industrial demand and investors looking for alternatives to pricey gold. Often seen as the “poor man’s gold”, silver has gained around 14% in 2025 so far, with a 2-year return of 20.3%. Investors can tweak allocations, exclude specific stocks, and view performance analytics via the Arta app. Assets are held at BNY Pershing, and liquidity is available within 3–5 days. With low minimums and transparent fees, this marks a step forward for inclusive, value-aligned investing.
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However, we can look to leading indicators and fortfs forex broker review fundamentals to understand what gold’s future performance might look like. Along those lines, Sean Casterline, president at Delta Private Wealth, maintains a strong outlook for gold, even if there is a pull-back. There have been three strong bullion price surges in recent decades—all during upheavals. President Richard Nixon suspended convertibility by central banks at US$35 an ounce in 1971, the market price soared to US$850 in 1980.
- Moreover, the Conference Board’s US Consumer Confidence Index rebounded sharply after a prolonged decline since December 2024 and jumped to 98 in May.
- Unlike physical gold or ETFs, gold mining stocks don’t just reflect the price of gold.
- It means, Mills has increased gold price forecasts from $1,820 to $2,000 per ounce from 2029 onwards.
- Right now, gold is trading at $3,175.87 per ounce, a sharp drop from the $3,324-per-ounce price it was at just one week ago and more than $225 lower than its early May peak.
Genesis Gold Group, a gold dealer that commonly works with clients it describes as “homesteaders” or “preppers,” says it’s seen intense interest in gold in the last few quarters. Demand for gold has been so hot, the company rolled out a prepper bar, a gold bar that can be broken off into pieces, making it easier to trade in the event of a crisis. SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you’re a beginner or an expert, find the right partner to navigate the dynamic Forex market.
What is happening to the price of Gold?
Jon Mills, an industry expert at Morningstar, made headlines in March when he suggested the cost of an ounce of gold could drop to just $1,820 over the next few years. Still, Boutrous thinks the demand for gold will remain strong as long as people feel uncertain about the economy. Even when trade agreements get hammered out, he believes investors will still be jittery as they wait to see the impact of tariffs on the economy. Most of Genesis’s clients are off-the-grid types who desire to be self-sufficient in the event of a collapse, Rose said.
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Its measure of consumer sentiment sank for a third straight month due mostly to concerns about the future. Last month, the Fed cut interest rates for the first time in more than four years. The chances of an additional quarter-point rate cut next month stand at more than 90%, according to the CME FedWatch Tool, a measure of market sentiment. gold mining stocks Meanwhile, traders have been pricing in the possibility of at least two 25 basis points interest rate cuts by the Federal Reserve in 2025. The bets were reaffirmed by signs of easing inflationary pressures.
US President Donald Trump decided to postpone the proposed 50% tariffs on the European Union from June 1 until July 9, offering some relief to markets and weighing on the safe-haven Gold price. Investors, however, remain on edge amid the traded uncertainty, deep-rooted US-China trade tensions, concerns about the worsening US fiscal condition, and persistent geopolitical risks. Generally, gold’s benefits as a hedge against inflation and safe haven make it a useful option worth considering right now. But experts often recommend allocating no more than 10% of your portfolio to gold. You might also consider consulting your financial advisor to determine if gold aligns with your long-term financial plan.
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Visit our website terms of use and permissions pages at for further information. However, it’s worth noting that while “headlines usually cause a dip, the structural problems with debt and currencies don’t go away,” Hanney says. “So, any cooling off would probably be temporary unless it’s paired with real economic healing.”
Since the start of 2025, gold had been on a swift upward trajectory, driven higher by factors like inflation concerns and geopolitical tensions. That led to the price of gold climbing to historic highs earlier recently, soaring above $3,400 per ounce. Right now, gold is trading at $3,175.87 per ounce, a sharp drop from the $3,324-per-ounce price it was at just one week ago and more than $225 lower than its early May peak. Some experts also attributed the rise in gold prices to geopolitical uncertainty and unease surrounding the coming U.S. presidential election. A perception of global instability often induces investors to purchase gold as means of safeguarding their funds in a millennia-old asset viewed as immune to major swings in global economic performance, they added.
