The gold price has indeed shown a strong upward trend since the beginning of the year, with an increase of about 27%, indicating significant market developments in the commodities sector. This development is especially relevant for investors, as gold has traditionally been considered a hedge against inflation and economic uncertainties.
Current Situation and Forecasts for Gold Price 2025
In May 2025, the average gold price was around $3,281 per ounce, a historically high value. Analysts and market observers remain optimistic (“bullish”) about the further course of 2025. Initial forecasts see a profit potential of about 10 to 15 percent compared to the current level. Goldman Sachs even expects a further record increase in the gold price by the end of 2025 to around $3,000 per ounce. This increase is mainly driven by persistent inflation expectations, geopolitical risks, and increased demand from central banks.
Drivers of Price Increase
- The ongoing uncertainty regarding inflation and geopolitical tensions makes gold a sought-after “safe haven”.
- Central banks—especially in emerging markets—have significantly increased their purchases since the onset of the Ukraine crisis to shift their reserves from US dollars to physical gold.
- Additionally, speculative purchases and inflows into exchange-traded funds (ETFs) provide further support for the price.
In summary, the rise in the gold price is currently driven not only by short-term speculation but also by fundamental factors such as inflation protection needs, geopolitical risks, and structural changes in central bank reserves. Therefore, gold remains an important hedge against economic uncertainties for investors, with a continued positive outlook in 2025.