Daily Spotlight: Gold Prices at Peak

Argus

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Feb 20, 2025

Summary

When global economic conditions become unpredictable, investors historically have flocked to gold. The yellow metal currently is trading above $2,900 per ounce, up 14% for the year and at the highest level in the past 25 years. Gold essentially has been on an upward arc since the start of the pandemic. During the first phase of the global health crisis, when no one knew what would happen, the spot price for an ounce of gold jumped 33% in six months and broke through the $2,000 level. Gold prices also spiked in 2022 due to the war in Ukraine. Over the past year, gold has jumped another 40%-plus, driven in part by global uncertainty over potential tariffs and trade wars. The current price of gold reflects the perceived safety of hard assets amid the global conflicts, as well as expectations for lower U.S. interest rates, which tend to weaken the dollar (the currency in which gold is priced). The outlook for Federal Reserve rate cuts also helps gold, as lower rates reduce the risk for a global economic recession and thus a potential decline in gold purchased for jewelry. Looking ahead, our forecast trading range for gold in 2025 is $3,200-$2,500 and our average price forecast for the ye