The gold price has undergone a remarkable development since the escalation of the Ukraine war in February 2022. In fact, the price per ounce has risen from around $1,800–$1,900 at the beginning of 2022 to currently about $3,310, just below the all-time high of around $3,500 reached in recent months.
Causes for the Increase in Gold Price
Flight to Safe Havens
- Geopolitical Uncertainty: The war between Russia and Ukraine and the resulting global tensions have prompted investors to shift their capital into safe assets like gold.
- Inflation Fears: Supply chain disruptions, energy crises, and sanctions triggered by the war have led to rising prices globally. In Germany, inflation was about 2.1% in May 2025, but many countries experienced significantly higher values at times.
- Currency Fluctuations: The weakness of some currencies against the US dollar—especially after interest rate hikes by the US Federal Reserve—has also contributed to gold’s attractiveness as a store of value.
Market Dynamics
- Demand for Physical Gold: Central banks around the world have increased their holdings of physical gold as part of their foreign reserves.
- Speculation and Portfolio Hedging: Many investors use gold as a hedge against market volatility and potential crisis scenarios.
Impact on Investors and Savers
Benefits for Owners of Precious Metals
- Value Increase: Those who invested before the price surge are now benefiting from a significant increase in their asset value.
- Inflation Protection: Especially in times of high inflation, gold offers protection against loss of purchasing power.
Challenges for New Investors
- High Entry Prices: It has become difficult for new investors to enter at favorable prices; the risk of short-term corrections has increased.
- Volatility: Despite the long-term upward trend, there can be significant fluctuations.
Comparison with Other Commodities
| Commodity | Development Since War Began (February 2022) | Current Price (June 2025) |
|---|---|---|
| Oil | Fluctuating to declining | $60–$70 per barrel |
| Gas | Highly fluctuating | Market dependent |
| Copper | Stable to slightly increasing | Variable |
| Silver | Moderately increasing | Variable |
In contrast to oil prices—which, despite short-term fluctuations, show a rather declining trend in the medium term—the gold price has clearly stabilized or further increased.
Conclusion
The Ukraine war has significantly contributed to the near doubling of the gold price. For investors, this means both opportunities and risks: while existing investments benefit, new investments have become riskier due to high prices. At the same time, gold remains a central instrument for hedging against geopolitical uncertainties and inflation.