{"id":21715,"date":"2025-05-09T08:44:39","date_gmt":"2025-05-09T08:44:39","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=21715"},"modified":"2025-05-09T08:44:39","modified_gmt":"2025-05-09T08:44:39","slug":"what-to-expect-trading-gold-in-2025","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/learn\/what-to-expect-trading-gold-in-2025\/","title":{"rendered":"What to Expect Trading Gold in 2025"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/Nayel-Aljawabrah_1408x768-1024x559.jpg\" alt=\"\" class=\"wp-image-21718\" \/><\/figure>\n\n\n\n<p>The year 2025 is shaping up to be nothing short of historic for gold.<\/p>\n\n\n\n<p>Since the onset of the COVID-19 pandemic in early 2020, the yellow metal has enjoyed a spectacular rally; rising from approximately $1,575 per ounce in January 2020 to surpassing $3,500 per ounce by mid-2025.<\/p>\n\n\n\n<p>Long valued as a symbol of wealth and a store of value, gold is once again asserting its dominance on the global stage, propelled by a complex interplay of economic anxiety, geopolitical instability, and monetary policy shifts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">2024: A Record-Breaking Prelude<\/h2>\n\n\n\n<p>The previous year, 2024, marked a turning point. <a href=\"https:\/\/finance.yahoo.com\/news\/gold-just-saw-its-biggest-yearly-gain-since-2010--heres-why-wall-street-says-prices-will-go-even-higher-193722720.html#:~:text=Although%20the%20precious%20metal's%20rally,gain%20of%20more%20than%2023%25.\">Gold prices soared by 27%<\/a>; their largest annual gain since 2010. This has set all-time highs <strong>on 40 separate occasions<\/strong>. It was an unprecedented run, driven by a confluence of macroeconomic events, including aggressive rate cuts, record-breaking central bank gold purchases, and <a href=\"https:\/\/www.investopedia.com\/what-is-de-dollarization-7559514#:~:text=De%2Ddollarization%20refers%20to%20shrinking,essential%20for%20conducting%20international%20business.\">global de-dollarisation<\/a> efforts.<\/p>\n\n\n\n<p>We see that this upward momentum hasn\u2019t just continued in 2025. If anything, it has accelerated.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">2025: Breaking Expectations<\/h2>\n\n\n\n<p>So far in 2025, gold has defied every forecast of a major pullback. Despite frequent warnings of a looming \u201cprice correction\u201d or a speculative bubble, the precious metal has instead reached fresh highs month after month. Each rally has sparked renewed debate: is this sustainable growth, or a bubble waiting to burst?<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">We like <a href=\"https:\/\/twitter.com\/search?q=%24NEM&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$NEM<\/a>, it&#39;s &quot;the biggest publicly traded company right now,&quot; Gabelli Funds associate portfolio manager Chris Mancini says. &quot;It&#39;s very cheap. It&#39;s the biggest gold miner in the world.&quot; <a href=\"https:\/\/t.co\/oQFc42rQUe\">pic.twitter.com\/oQFc42rQUe<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1919418056511561851?ref_src=twsrc%5Etfw\">May 5, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>For now, the evidence points to the former. Temporary price dips have been shallow and short-lived, typically coinciding with brief periods of geopolitical calm or minor recoveries in global economic indicators. These pauses are widely seen as healthy market corrections within an otherwise strong upward trend.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">What\u2019s Driving the Surge?<\/h2>\n\n\n\n<p>Several key factors continue to fuel gold\u2019s ascent:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">1. US Interest Rates<\/h4>\n\n\n\n<p>Historically, gold moves inversely to interest rates. As the Federal Reserve shifts toward rate cuts in response to slowing growth, lower yields on traditional safe-haven assets like government bonds make gold more attractive.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">\u201cJust one day after the Federal Reserve opted to hold interest rates steady, President Trump resumed his criticism of Fed Chair Jay Powell,\u201d<a href=\"https:\/\/twitter.com\/Jenniferisms?ref_src=twsrc%5Etfw\">@jenniferisms<\/a> explains: <a href=\"https:\/\/t.co\/0zwzcEiv68\">pic.twitter.com\/0zwzcEiv68<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1920566876351942860?ref_src=twsrc%5Etfw\">May 8, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>With real interest rates slipping back into negative territory in 2025, investors are flocking to gold as an inflation hedge.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">2. Persistent Inflation<\/h4>\n\n\n\n<p>Global inflation remains stubbornly high, especially in the US and Europe. Gold has long been viewed as a traditional hedge against inflation, preserving purchasing power even as fiat currencies weaken.<\/p>\n\n\n\n<p>With consumer prices climbing and monetary policies remaining loose, the appetite for gold remains strong<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">3. Geopolitical Instability<\/h4>\n\n\n\n<p>Ongoing conflicts, including the prolonged Russia\u2013Ukraine war and rising tensions in the Taiwan Strait, continue to inject uncertainty into the global economy.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The U.S. Department of Defense faced one of its biggest leaks in years of classified documents and intelligence detailing Ukraine&#39;s progress in its war with Russia and more. <a href=\"https:\/\/twitter.com\/rickjnewman?ref_src=twsrc%5Etfw\">@rickjnewman<\/a> reports what we know so far: <a href=\"https:\/\/t.co\/IitC4HSMXs\">pic.twitter.com\/IitC4HSMXs<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1645449809623490565?ref_src=twsrc%5Etfw\">April 10, 2023<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>This climate of instability enhances gold\u2019s appeal as a safe-haven asset, especially during market sell-offs or crises.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">4. Central Bank Demand<\/h4>\n\n\n\n<p>One of the most significant drivers has been aggressive gold accumulation by central banks. In particular, China, India, and Russia have sharply increased their gold reserves in a broader strategy to diversify away from the US dollar. This is often referred to as \u201csmart hedging.\u201d<\/p>\n\n\n\n<p>According to the World Gold Council, central bank purchases reached record levels in 2024 and have continued at a strong pace in 2025.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">5. US Political Risk &amp; Trade Wars<\/h4>\n\n\n\n<p>The <a href=\"https:\/\/www.cnn.com\/election\/2024\/results\/president\">re-election of Donald Trump in November 2024<\/a> and his inauguration in January 2025 reignited global trade tensions.<\/p>\n\n\n\n<p>Trump\u2019s administration swiftly reintroduced punitive tariffs. This is not just on China, but across a range of US trading partners.<\/p>\n\n\n\n<p>In response, China announced new tariffs on US imports, escalating trade hostilities. These events have increased fears of a global slowdown and pushed investors toward gold.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">6. US Federal Debt Crisis<\/h4>\n\n\n\n<p>A lesser-discussed but increasingly potent force behind gold\u2019s rally is the <a href=\"https:\/\/www.aljazeera.com\/economy\/2024\/9\/24\/for-harris-and-trump-runaway-us-debt-is-the-elephant-in-the-room\">ballooning US national debt<\/a>, which has now exceeded <strong>$36 trillion<\/strong>.<\/p>\n\n\n\n<p>As concerns mount over long-term fiscal sustainability and potential currency debasement, investors are hedging by moving into hard assets.<\/p>\n\n\n\n<p>Some analysts now argue that the era of gold under $2,000 per ounce is firmly over, and the next psychological target is $4,000 or even $4,200.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\">What\u2019s Next for Gold?<\/h3>\n\n\n\n<p>With monetary easing, geopolitical tension, and sovereign debt concerns showing no signs of abating, many analysts believe gold\u2019s bull run still has legs.<\/p>\n\n\n\n<p>If central banks continue buying at current levels, and fiscal pressures in the US intensify, the market could see <strong>new record highs<\/strong><strong>, <\/strong><strong>possibly exceeding $4,200\/oz by year-end<\/strong>.<\/p>\n\n\n\n<p>As with all markets, nothing is guaranteed. But for now, gold is not just glittering\u2014it\u2019s roaring.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*1azgbap*_gcl_au*NjE5NTE3MjY4LjE3NDQ2MDA3NDI.*_ga*MTY4OTgwNTU5Mi4xNzM2NzQ2MTgy*_ga_J26NL1ZVX7*czE3NDQ5NDQ0NTYkbzEyMCRnMCR0MTc0NDk0NDQ1NiRqNjAkbDAkaDA.\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold is once again asserting its dominance on the global stage, propelled by a complex interplay of global shifts. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":21718,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[28],"tags":[29],"class_list":["post-21715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-learn","tag-learn"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/21715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=21715"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/21715\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/21718"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=21715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=21715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=21715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}