Gold has once again proven its reputation as a “crisis asset”, with prices skyrocketing to unprecedented levels amid escalating global uncertainty. Within just 18 months, the price of gold has doubled—from about USD 1,700 (SGD 2,280) per ounce in October 2023 to breaching USD 3,500 (SGD 4,690) per ounce by April 2025. The sharp rally has reignited debate among analysts on whether gold is entering a long-term structural bull market or simply experiencing a short-lived surge.
According to market data, gold futures climbed swiftly, taking only 10 trading days to move from USD 3,100 to USD 3,200, and then surging past USD 3,500 within just four sessions. At one point, prices hit USD 3,509.90, setting a fresh all-time high. Although prices later fluctuated between USD 3,200 and USD 3,400, renewed concerns over potential taxation of gold bars in the United States once again pushed prices upward, reinforcing its safe-haven appeal.
Currently, spot gold is hovering around USD 3,339 (SGD 4,470) per ounce. While the week ended with a slight dip of 1.7%, analysts stress that the long-term fundamentals remain strong.
Geopolitical Risks and Weakening Dollar Drive Demand
Analysts attribute the rapid surge in gold prices to a combination of geopolitical instability and eroding confidence in fiat currencies. Ongoing wars in Ukraine and the Middle East, coupled with trade tensions fuelled by former U.S. President Donald Trump’s tariff policies, have created a climate of economic uncertainty.
Central Banks Fuel the Global Gold Rush
Beyond retail investors, central banks have emerged as major drivers of gold’s rally. According to the World Gold Council, global central bank purchases of gold surged to a record 1,086 tonnes in 2024, continuing the upward trend from 2022. China, India, Poland, Turkey, and several Middle Eastern nations have significantly increased their reserves, partly as a hedge against U.S. sanctions and to reduce reliance on the dollar.
This wave of official demand now accounts for nearly a quarter of annual global gold consumption. Economists argue that such large-scale buying is reshaping the gold market, creating a structural upward trend that may persist.
Forecasts, however, remain divided. JPMorgan predicts gold could reach USD 4,250 (SGD 5,700) per ounce by late 2026, while Citi and Bloomberg Research expect prices to correct to around USD 2,500–2,600 (SGD 3,350–3,480) as markets stabilise.
For now, gold continues to glitter as the preferred hedge against inflation, currency volatility, and geopolitical risks—cementing its role not just as a safe-haven asset, but increasingly, as a mainstream investment tool.