Gold Prices Reach Record High: Will The Bullish Trend Continue?

Gold investors are currently experiencing the most favorable moment in history. The price of gold has surged to an all-time high, driven by a spike in demand for safe-haven assets amid global economic uncertainty and geopolitical turmoil.

However, what has led to this sudden increase in gold prices?

Global uncertainty drives demand for gold.

According to financialexpress, since 2022, central banks in various countries have begun to increase their gold reserves. This trend has been accompanied by a surge in gold ETF investments from both retail and institutional investors. As the demand for gold continues to exceed supply, prices have been significantly driven upwards.

The price of gold, which was at the level of US$1,500 per ounce in October 2022, has now surged above US$3,400, representing an increase of approximately 125% in less than three years. In just the past year, the price of gold has risen by more than 50%, with gold returns over the last decade reaching 180%.

On April 22, 2025, the price of gold reached an all-time high of US$3,500 per ounce. This increase was driven by concerns over a global recession, a weakening US dollar, inflation threats due to tariff policies, and rising geopolitical tensions — particularly between the United States and China.

What Are the Predictions for Gold Prices Going Forward?

Although no one can definitively predict the future direction of gold prices, several major financial institutions and leading analysts have revised their gold price targets for 2025 and beyond — mostly upwards.

Goldman Sachs forecasts that demand from central banks will continue to be a primary driver of gold prices. In the base case scenario, gold prices are expected to reach US$3,700 per ounce by the end of 2025, and could exceed US$3,880 if a recession strikes the US.

In a high-risk scenario, gold targets could reach US$4,500 per ounce by year-end, offering a potential return of up to 71.5%.

On the day gold hit US$3,500, JP Morgan released a prediction that gold prices could reach US$4,000 per ounce by 2026. This forecast is based on recession concerns and new tariff policies from the Trump administration that have extended global trade tensions.

Citi Research had previously raised its gold price target for the next three months to US$3,500 per ounce from US$3,200, thanks to demand from Chinese insurance companies and safe-haven fund flows. This target has now been achieved, and the market is now awaiting the latest target revision from Citi.

Meanwhile, data from the World Gold Council indicates that global physical gold ETFs experienced an outflow of US$1.8 billion in May, ending a five-month inflow trend — signaling short-term volatility in demand.

Perspectives from World Gold Figures

According to Milling-Stanley, uncertainty is the primary driver of gold prices. He asserts that the "price floor" for gold has now risen from US$2,000 to over US$3,000. In an optimistic scenario, gold prices could reach US$3,900.

Paulson believes that the weakening of the US dollar and central bank purchases of gold will push gold prices to US$5,000 per ounce by 2028.

Morris forecasts that gold prices could hit US$7,000 by 2030, driven by high inflation and a declining appeal of bonds and stocks in developed countries.

Although he does not provide a price target, Dalio purchased 1.1 million shares of the SPDR Gold Shares ETF worth nearly US$319 million in the first quarter of 2025. This indicates his confidence in gold as a hedge asset.

Kiyosaki holds an extreme view: gold prices could soar to US$25,000 due to the instability of the global financial system, a downgrade in US credit ratings, and a decline in US government bond sales.

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