Gold, up nearly 30% in 2025 after a 25% gain in 2024, is outpacing equities and solidifying its status as the premier investment safe haven. Amid economic instability, geopolitical tensions and fiscal uncertainty, analysts project it could hit a record average of $3,210 this year, with potential spikes to $3,900.
Metals Focus forecasts a 35% jump in gold’s 2025 average price, citing macroeconomic risks and sustained investor demand. Central banks are driving momentum, with 2024 net purchases hitting 1,086 metric tons as they diversify from the U.S. dollar. Retail and institutional demand remains strong, particularly in Asia, offsetting slower Western markets.
Expectations of Federal Reserve rate cuts and speculative trading have further fueled gold’s rally. Analysts say with central banks stockpiling, investors hedging volatility and governments spending freely, gold’s role as a financial safeguard is only growing. For now, its appeal as both a hedge and a haven has never been brighter.