Gold prices held firm above US$2,860 per troy ounce on Friday, remaining near record highs reached earlier in the week. This surge is driven by growing expectations that major central banks will ease monetary policy this year. Rate futures suggest investors anticipate two rate cuts from the Federal Reserve in 2025, despite a robust labour market. This aligns with recent projections by Federal Open Market Committee (FOMC) members.
The Bank of England also recently delivered a rate cut with more dovish-than-expected voting results. Additionally, the Reserve Bank of India (RBI) implemented its first rate cut in nearly five years, a direct response to the pandemic. Previous rate cuts by the European Central Bank (ECB) and the Bank of Canada (BoC), with the latter ceasing quantitative tightening, further contribute to this trend.
These actions have strengthened bullion assets, driven by increased demand for safe-haven investments. This demand is fuelled by the potential for China to impose tariffs against the US and US President Trump’s threats regarding the Gaza Strip. The combination of these geopolitical and economic factors creates an environment conducive to rising gold prices. Gold has increased US$235.09 per troy ounce, or 8.96%, since the start of 2025, reflecting strong investor interest in the precious metal as a hedge against uncertainty.
Trading Economics global macro models and analyst expectations predict gold to trade at US$2,832.12 per troy ounce by the end of this quarter. Furthermore, projections indicate a potential rise to US$2,939.54 per troy ounce within the next 12 months. This positive outlook underscores the continued appeal of gold as a valuable asset in the current economic climate. Gold’s historical performance, reaching an all-time high of US$2,886.29 in February 2025, reinforces its resilience and potential for future growth.
Gold is primarily traded on the over-the-counter (OTC) London market, the US futures market (COMEX), and the Shanghai Gold Exchange (SGE). The standard futures contract is for 100 troy ounces. Gold’s enduring appeal stems from its historical role as a safe haven asset during periods of political and economic uncertainty. Approximately half of global gold consumption is for jewellery, 40% for investments, and 10% for industrial applications.
The leading producers of gold include China, Australia, the United States, South Africa, Russia, Peru, and Indonesia. The largest consumers of gold jewellery are India, China, the United States, Turkey, Saudi Arabia, Russia, and the United Arab Emirates. Understanding these supply and demand dynamics provides crucial context for interpreting fluctuations in the gold price in USD today. Trading Economics provides gold prices based on OTC and contract for difference (CFD) financial instruments, serving as a valuable reference point for market analysis.
From 1968 to 2025, gold prices have fluctuated significantly, ranging from a low of US$34.83 per troy ounce to a high of US$2,886.29 per troy ounce. This volatility underscores the importance of staying informed about current market conditions and factors influencing the gold price in USD today. The information provided here is for informational purposes only and should not be considered investment advice. Always consult with a qualified financial advisor before making any investment decisions.