Where Gold Prices are Heading In 2024-2025: Analyzing Market Trends and Geopolitical Influences

Where Gold Prices are Heading In 2024-2025: Analyzing Market Trends and Geopolitical Influences
Posted on June 10, 2024 by BOLD Precious Metals

Gold investments are some of the safest and most fruitful investments. Having said that, investors should also make wise and informed decisions. Putting in your hard-earned money without analyzing market trends, especially gold spot prices can put you in a difficult place. Find yourself a trusted dealer and know the market well before making any concrete decision.

The most important aspect of making a gold investment is knowing the gold prices. Simply knowing the current gold price is not enough. Investors should know the past trends in the rise or fall of gold prices over time. They should also know the factors influencing gold prices in the market.

In this piece, we will understand the existing gold spot prices, analyze the trend gold prices have followed for three decades, and have a look at the geopolitical influences on gold prices.

     Gold Prices 2024

Gold Prices 2024

If you are planning to purchase gold in 2024, have a look at the gold spot prices this year. As of June 7, 2024, the gold price in the US is $2,378.96.

     Gold Spot Price: Key Notes On The Last Three Decades

From central banks to individual gold buyers, price discovery is important for everyone interested in buying gold. Looking at the rise and fall of the gold spot price over the last three decades helps us understand how stable (or unstable) the markets have been.

Fortunately, in most cases, the gold prices have increased with time. If such trends continue, buying gold today will yield handsome returns in the future.

Let us have a quick look at the gold spot prices from 1994 to 2024:

1994 – 2003

As unreal as it sounds today, the gold spot price in January of 1994 was a mere $391.8. Looking at the gold price today, people who invested in gold back then have earned quite a fortune! By the end of the decade, the gold spot price rose to $416.3 (as of December 2003). The average gold spot price of this decade was $328.37.

2004 – 2013

January of 2004 continued witnessing the gold spot price at $416.3. However, the decade experienced an impressive spike in price, ending with $1,204.50 in December 2013. The average gold price in this decade was $987.24.

2014 – 2024

The gold spot price remained at $1,204.50 in January 2014. Until the May of 2024, the price increased to $2,407.90. It is advisable to track gold spot prices in real-time to make informed investment decisions.

     Major Increases in Gold Spot Prices Between 2020 and 2024

Irrespective of economic uncertainties and global financial crises, gold spot prices have only increased every decade. This is the key reason Central Banks and individual buyers invest in gold to ensure financial stability.

Here are the two high points attained by the gold spot prices since the onset of the COVID-19 rises:

  • 2020 – Hitting an all-time high $2,000 mark
  • 2024 – Hitting an all-time high $2,400 mark

Witnessing a jump of $400 in a span of three years and nine months is huge and unprecedented. This indicates how dynamic our global economy is and how it influences the price of gold. It also shows how gold prices will continue to rise every year, irrespective of economic uncertainties.

     Geopolitical Influences on Gold Prices

Major events occurring across the globe have a direct influence on gold prices. Most geopolitical events increase economic volatility, prompting countries and their central banks to find ways of ensuring stability. This often influences a country’s gold reserves, driving the gold prices accordingly.

Let us have a look at a few key geopolitical events and their influence on gold prices:

1. Russia – Ukraine Conflict

The Russia-Ukraine conflict has had widespread economic implications for countries worldwide. Especially since an armed conflict broke out in February 2022, the crude oil and gold prices witnessed a spike. Moreover, multiple sanctions imposed on Russia made it move away from using the US dollar as its chief reserve currency. Instead, the country adopting the Chinese renminbi as an alternative.

Such de-dollarization further increases global economic uncertainties, prompting central banks of multiple countries to buy more gold. This has led to an increase in gold prices across the globe.

2. Middle East (Gulf Countries)

For the longest time, the US imported oil from the Middle East. In return, the Gulf countries used the US dollar as their chief currency reserve, conducting international trade using the USD. However, as the US became increasingly more independent in oil production, it influenced its relations with the Gulf countries, reducing their dependence on the US dollar.

The Middle East crisis influencing the global economy is the Israel-Palestine conflict. Since the Hamas attack on Israeli territory in October 2023, the two countries have not been at peace with each other. This conflict has led to a 9% jump in the gold spot prices.

Both the events mentioned above have made central banks buy more gold as a hedge against economic uncertainties. Looking at the trends, the gold prices will only increase in the years to come.

3. USA – China Trade War

The trade relations between the US and China over the last few decades have been dynamic, to say the least. While China is the topmost export market for the US, the US serves as a top export market for China. While many US consumers have benefitted from cheap goods, trade relations with China have also made many US citizens lose jobs in the wake of import competition.

These tensions increased when China sided with Russia in its conflict with Ukraine. The US has also threatened China to impose sanctions if it continues helping Russia against Ukraine.

With both China and the US being major global economic players, such tensions threaten global economic uncertainties, ultimately increasing gold spot prices across the globe.

     Gold Investment: Risk of Opportunity?

Analyzing the steady rise in gold prices over the last few decades implies that gold investment cannot go wrong any time soon. If you invest in gold today, you are likely to make a safe investment that gives you impressive returns in the future.

However, it is important to keep an eye on geopolitical scenarios before making an investment decision. Here is what Bloomberg Television has to say about the impact of such events on investors:

    The Final Word: What To Expect From 2025?

2024 witnessed an all-time high gold spot price that crossed $2,400. Will this trend continue? Looking at the geopolitical climate and the central banks buying more gold, it is safe to say that investing in gold now will give you good returns in 2025.

Globalization is getting more dynamic; countries are moving away from the US dollar as their currency reserve, and central banks are increasing their gold reserves. All of this hints toward a possible increase in gold spot prices in the days to come.

Here is what Bloomberg has to say about the fracturing of globalization in the future:

As gold prices are likely to increase in the future, it is important to find the right professional to help you make smart investment decisions. BOLD Precious Metals is a trusted platform that helps you buy gold coins and bars at the best market prices.

We also keep you informed about the latest market trends, spot price fluctuations, and geopolitical events influencing gold prices. With BOLD Precious Metals, you can invest in bullion gold at the right time and reap the benefits in the years to come!

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