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Gold has traded in a range of $40 per ounce on quieter days to $120 an ounce on volatile days, especially since the introduction of reciprocal tariffs.
Global banks have repeatedly revised their gold price
forecasts higher—not just for 2025, but for the next 4–5 years.
The year began with gold at $2,650 an ounce, and it is currently trading at an all-time high above $3,200 an ounce. The recent correction to $2,955 an ounce in April is now being viewed as a strong support level.
A break below this could see prices fall to $2,800 per ounce or even $2,600 per ounce—levels that most global reports suggest would be strong long-term buying opportunities.
Traditional textbook correlations have broken down. Gold gained nearly 28% in 2024, even as the dollar index surged and equity markets performed well.
In 2025, March saw a 10% gain and April has already delivered a 6% increase.
Gold has hit all-time highs across all major currencies, including the US Dollar, Indian Rupee, Chinese Yuan, Japanese Yen, Euro, British Pound, Canadian Dollar, and Australian Dollar.
US President Trump has announced a 90-day pause on reciprocal tariffs while simultaneously raising duties on Chinese imports to a staggering 125%.
This aggressive stance has sparked fears of a full-blown trade war with global implications, as the world’s two largest economies escalate their economic conflict.
Now, here are 10 reasons why you should continue to invest in gold and accumulate more in the years ahead:
Trade tariffs: Global markets are dealing with major uncertainty due to tariffs. The next 90 days and any developments thereafter will keep gold attractive as a safe haven. US-China retaliations are already boosting demand in the near term.
Central bank buying:
Central banks have been consistently buying gold for decades. In the last three years, they’ve bought over 1,000 tonnes annually. China reported strong gold purchases for the fifth consecutive month in March 2025.
Stagflation concerns: The latest US Fed policy minutes indicate concerns that the US economy could experience stagflation—higher inflation coupled with low growth. Gold typically performs well in such environments.
China ETF inflows: Chinese gold ETFs saw record inflows of $1 billion, with buying continuing in 2025. Global ETF inflows have been rising since 2024 and are expected to remain strong.
Potential US Fed rate cuts: The US Federal Reserve is expected to cut interest rates two more times in 2025, which supports the bullish case for gold.
Consistent performance: From 2000 to 2025, gold has had only two major negative return years.
Geopolitical tensions: From the Russia–Ukraine war to the collapse of the Israel–Hamas ceasefire and growing political unrest worldwide, geopolitics continue to drive demand for gold.
Currency fluctuations: The dollar index is trading at three-year lows, with steep losses versus the CHF, JPY, and Euro, making gold cheaper in those currencies.
Soaring debt levels: The US national debt crossed a record $36 trillion in November 2024. With growing concerns over how this debt will be managed, gold becomes a natural hedge. It’s not just the US—global debt has also ballooned. When in doubt, go for gold.
Market volatility: Equity markets have been in the red so far in 2025. Volatility has increased, and investor portfolios have suffered—unless, of course, they held gold!
As the saying goes: Gold doesn’t create wealth—gold is wealth.
Unlike paper money, gold is a tangible, physical asset with intrinsic value.
Consumer sentiment toward gold is improving, and gold financialisation is gaining momentum.
Banks’ outlook on gold (2025 forecasts):
- Deutsche Bank: $3,139 – $3,700
- HSBC: $3,015
- ANZ: $3,200
- Goldman Sachs: $3,300
- UBS: $3,200
- Bank of America: $3,350
- J.P. Morgan: $3,000
- Citi: $3,500
- DeVere Group: $3,300 – $4,500
- Swiss Asia Capital: $8,000 by 2028
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