The beginning of 2025 has already been historic for gold. It saw price levels push to new record highs, reminding investors everywhere why gold is the ultimate refuge in times of uncertainty. It’s here at AU Bullion that we’ve been following the trends closely—and in this blog, we’re explaining what occurred in Q1 and what may be on the horizon for this precious metal.

A Record-Breaking Beginning of the Year

Gold started the year on strong footing, at $2,658.04 per ounce on January 2. By April 3, it had surged to an astonishing $3,167.57 per ounce. That is a nearly 19% rise in just one quarter—a remarkable performance, even for gold on its biggest days.

So what’s behind this momentum? Let’s dive into the main drivers.

Why is gold on the rise

1. Geopolitical Uncertainty

Global tensions are increasing. One of the biggest hotspots occurred when the U.S. imposed a 104% tariff on Chinese imports—something that sent investors running for the hills and made global markets shudder. In times of uncertainty, gold glitters. And that’s precisely what occurred.

2. Central Banks Stocking Up

Across the globe, central banks, particularly in the emerging world, are increasingly purchasing gold in order to secure their reserves. There is so much political and economic risk in the world today that gold is an effective means of diversifying and staying safe. This institutional demand is placing significant upward pressure on the price level.

3. Inflation and Economic Anxiety

With inflation persisting and aggressive trade policies on the rise, people are increasingly resorting to gold as an insurance policy for their fortunes. Even the U.S. dollar, once regarded as a safe bet, does not quite feel as secure these days. That’s making gold the center of attention.

What’s Next for Gold

So what’s next? Nobody has a crystal ball, of course, but most analysts think there’s still more upside for gold—albeit perhaps with some bumps along the road.

Price Projections: Some of the top market players, such as Bank of America, believe gold may reach $3,500 USD per ounce as early as 2026. It’s an ambitious prediction, but perhaps not impossible in the circumstances.

Long-Term Indicators Suggesting Optimism: Although we’ve reached record heights, gold is yet to breach its inflation-adjusted high reached in the 1980s. With uncertainty continuing on the global stage and no indication of economic tranquility as yet, most people are of the view that gold’s upward movement is no flash in the pan.

Likely Challenges: There are, however, things that can temper enthusiasm. An unexpected policy action on the part of the Federal Reserve or a higher, rising U.S. dollar may halt the rally. However, most analysts are betting that gold will be in demand at high levels.

Concluding Remarks

Gold’s performance in Q1 of 2025 has again demonstrated why it is such an ageless investment. If you’re new to precious metals or are an experienced investor, this may be a wise moment to reassess your portfolio and determine where gold might fit in for you. We provide some of the best prices in the market at AU Bullion, and our staff will be there for you at any time should you need assistance in making your purchase, selling, or staying informed.

Ready to invest or interested in learning more? Stop on by or call us today—we can’t wait to talk!