Besides interest rates, macroeconomic and geopolitical concerns continue to factor into the price rise, consolidating gold’s status as a safe‑haven asset. Central banks’ policy of reserve diversification is another important driver (see “The price of gold is rising, but banks continue to buy it. Why are they bolstering their reserves?”).

Gold has been enjoying robust growth momentum for months now, with its USD price rising by over 25% year on year. The standard 400 oz (approx. 12.4 kg) gold bar used in international trade and by central banks is now priced at over a million US dollars, up from USD 725,000 in October last year.

“Current trends are very positive for gold,” said Kyle Rodda, an analyst at Capital.com, predicting that prices could climb to as much as 2,800 dollars an ounce over the next 12 months (an increase of around another 8%).

And he’s not alone. The view that everything is now playing into gold’s hands is backed by many other analysts.

“Gold prices are expected to be well supported in the coming months due to a weaker US dollar and lower bond yields, as well as against a backdrop of elevated geopolitical tensions,” analysts from BMI noted.

The current rally in gold will continue even according to UBS forecasts.The bank sees the gold price at USD 2,700 per troy ounce by mid-2025 and recommends investors to include gold in their portfolios. Goldman Sachs also expects a similar price trend, predicting USD 2 700 per troy ounce by early next year (Gold is the best investment right now, says Goldman Sachs).

 

Is the price too high now? Is it worth buying gold? It is important to remember that no asset, including gold, grows in a straight line. This is an opportunity for you to make gradual additions to your portfolio. By making regular purchases, you will average out the cost of purchasing investment bars and coins, and by taking part in IBIS InGold savings schemes you can benefit from a better price per gram of gold when purchasing larger amounts. You can then exploit any price corrections to increase the share of gold in your portfolio.