Gold continues to make investors rich in 2025. Those who invested in gold in 2024 saw excellent profits.
On April 11, gold hit a new record, surpassing $3,200 per ounce in the international market.
Additionally, gold futures crossed Rs 93,000 per 10 grams for the first time on the MCX (commodity exchange).
This rise is attributed to US President Donald Trump’s tariff policies, and many global banks predict that gold’s price will keep increasing over the next 4-5 years.
At the start of 2025, gold’s price was around $2,650 per ounce, and it’s now trading above $3,200.
In 2024, gold gave a return of about 28%. Experts say the ongoing tariff war between the US and China, with no resolution in sight, will likely push gold’s price further up.
If you don’t already have gold in your investment portfolio, experts recommend investing 10-15% in gold. Here are 10 key reasons why investing in gold makes sense:
10 Big Reasons to Invest in Gold:
Trade Tariffs: Although Trump has delayed tariffs on 78 countries for 90 days, his stance on China remains tough. With no agreement in sight, the tariff war may drive gold prices higher.
Central Banks’ Purchases: Central banks globally are increasing their gold holdings. Over the past three years, they’ve bought more than 1,000 tonnes of gold annually, impacting gold prices positively.
Concerns of Stagflation: The US Federal Reserve has expressed concerns over stagflation, where inflation rises but economic growth slows down. This situation could boost the demand for gold.
Investment in Gold ETFs in China: Investment in gold ETFs has surged in China, with around $1 billion invested in 2024. This trend is expected to continue into 2025.
US Interest Rates Expected to Fall: The US Federal Reserve is expected to reduce interest rates at least twice in 2025, which historically drives gold prices up.
Gold’s Strong Performance: Over the past two decades, gold has provided excellent returns to investors, only posting negative returns twice between 2000 and 2025.
Geopolitical Tension: Ongoing tensions in the Middle East and the Russia-Ukraine conflict are keeping demand for gold strong, as it’s seen as a safe haven.
Currency Fluctuations: With the US dollar weakening to a three-year low, gold becomes cheaper in other currencies, which could drive global demand.
Rising Debt: The US government’s debt has reached over $36 trillion as of November 2024. This rising debt could create instability, increasing gold’s value as a hedge.
Market Volatility: Global stock markets have experienced significant volatility in 2025. The weak performance of stocks, particularly in the US and India, is encouraging investors to flock to gold.
2025 Gold Price Targets by Banks:
Here are the predicted gold price targets for 2025 from major banks:
Deutsche Bank: $3,139 – $3,700 per ounce
HSBC: $3,015 per ounce
ANZ: $3,200 per ounce
Goldman Sachs: $3,300 per ounce
UBS: $3,200 per ounce
Bank of America: $3,350 per ounce
JP Morgan: $3,000 per ounce
City: $3,500 per ounce
Given these predictions and factors, gold seems to be a promising investment in 2025.
