Gold investment exhibits diverse modes due to persistent demand as a secure asset
In recent months, the price of gold reached an all-time high of $3,500 per ounce, and analysts predict that this trend is set to continue. Here's a closer look at the key predictions and factors driving the gold market.
The biggest gold ETF, SPDR Gold Shares (GLD), holds real gold bars stored in HSBC's high-security vault in London. Alongside this, there are various funds that buy gold and allow investors to invest in them via shares. For those seeking Shariah-compliant options, there are ETFs like Albilad Gold ETF or TradePlus Shariah Gold Tracker.
Jewellery remains the largest segment of gold demand, accounting for 44% of total demand. However, gold is not just for jewellery; it's also a popular investment choice, especially during times of uncertainty.
Multiple recent analyses suggest that gold prices are likely to rise above their current levels of about $3,300 per ounce. A realistic range for the near term (next 12 to 24 months) is approximately $3,500 to $5,000. More aggressive medium-term forecasts predict gold could soar to $7,000–$7,500 within a year, and potentially reach $8,000 to $10,000 by 24 months if major economic or political disruptions occur.
The World Gold Council signals a slight upward bias in the second half of 2025, with potential 10-15% gains if economic or geopolitical conditions worsen. InvestingHaven projects a gold peak price above $3,500 in 2025, rising further to around $3,800 in 2026 and crossing $4,400 by 2027, eventually targeting over $5,100 by 2030.
Factors underpinning these outlooks include a stabilizing or weakening U.S. dollar, central banks increasing gold reserves aggressively, expectations of monetary easing, ongoing geopolitical and economic uncertainties, and declining real yields supporting precious metals.
Digital gold platforms, such as Just Gold, SafeGold, and BullionVault, allow buying small fractions of physical gold online and offer lower entry tickets and no storage worries, making them attractive to younger, mobile-first investors. Tokenized gold, like Tether Gold, enables fractional ownership at potentially lower prices.
Investing in companies that mine gold, such as Newmont Corporation and Barrick Gold, is another avenue for investors. Exchange-traded funds (ETFs), like the VanEck Gold Miners ETF, are a popular type of gold fund, offering lower costs than traditional mutual funds.
Goldman Sachs has a $3,700 price target by the end of 2025, while Scott E. Campbell predicts gold will rise to $3,700 a troy ounce by the end of 2025, with more growth expected over the next 12-24 months.
In summary, while estimates vary, the consensus among multiple recent analyses is that gold prices are likely to rise above current levels, with a realistic range of approximately $3,500 to $5,000 in the near term and potential for substantial gains up to $7,000–$10,000 if major economic or political disruptions occur within the next 12 to 24 months.
The biggest ETF for gold, SPDR Gold Shares, and various funds offer investors opportunities to buy gold through share ownership. Gold is not only used for jewelry; it's also popular for investments, especially in uncertain times. Analysts predict that gold prices could rise above their current levels, with a realistic range of $3,500 to $5,000 in the near term, and potentially soaring beyond $7,000–$10,000 in the case of major economic or political disruptions. Goldman Sachs alone has set a $3,700 price target for gold by the end of 2025.
