Gold has been a stalwart of wealth preservation for eons. Investors have flocked to gold through the ages — from ancient cultures to modern economies — in moments of uncertainty. But going into 2025, is gold still a safe bet? So, what are the drivers of gold prices and is it still a great asset for investors?

Gold and its performance over the years

Gold prices have also appreciated steadily over time, thanks in large part to economic uncertainty, inflation, and central bank policies. In 2024, gold soared to new highs as geopolitical tensions and rising inflation spurred demand. Gold’s value continues to be supported by the fact that central banks across the world keep stockpiling gold in survey of economic instability. But what does this mean for 2025?

Major Influencing Factors of Gold Prices in 2025

All these, along with other factors will determine the price of gold in 2025. This can be a profitable investment.

Inflation and Interest Rates

Inflation has been an issue for global economies. As central banks have tried to rein in inflation by raising interest rates, it’s unclear whether they are working. Gold has historically served as a hedge against inflation — so if inflation continues to remain high, gold’s value will increase.

Geopolitical Uncertainty

Escalating conflicts, trade wars, and fragility of global economies in recent years have led many investors to flock towards safe-haven such as gold. As geopolitical tensions persist in 2025, gold may remain a dependable store of value.

Central Bank Demand

The central bank still holds a high demand for Gold. This is a major sign that Gold is still a strong investment.

Supply Constraints

Gold mining output has been fairly flat, and new discoveries are becoming scarce. Gold’s price is likely to stay strong as supply stays limited and demand continues to grow.”

Is Gold Worth Investing in 2025?

Gold continues to show potential in 2025, here’s why: 

Inflation Hedge: Major banks and investors are still using the yellow metal to hedge against inflation. Due to its safe-haven status, during times of economic uncertainty and political conditions, Gold still prevails as the stable asset that is has been for centuries. 

How to Invest in Gold in 2025

If you’re thinking about adding gold to your portfolio, then look no further! AU Bullion offers a wide variety of Gold bullion for you to choose from your next precious metals investment. From small 1 gram bars all the way up to 1 kilo bars, AU Bullion has got you covered.