First: Gold Price Trajectory from January 2023 to April 2025
1. Price Increase Overview
- At the beginning of 2023, gold was priced at around $1,825 per ounce.
- By the end of 2023, it had risen to approximately $2,050 per ounce.
- Throughout 2024, it continued to climb, surpassing $2,300 by mid-year.
- In April 2025, gold hit a new record high of $3,391.62 per ounce.
📈 Result: Over nearly two years (early 2023 to April 2025), gold increased by more than 85%.
2. Key Reasons Supported by Statistics
A. Geopolitical Tensions
- Global investments in gold as a safe haven increased by 24% according to the World Gold Council (WGC).
B. Weakening US Dollar
- The US Dollar Index (DXY) declined by 12% between early 2023 and mid-2025.
C. Central Bank Purchases
- In 2023, central banks bought approximately 1,136 tons of gold, the second-highest annual total on record.
- China alone added more than 200 tons to its gold reserves between 2023 and 2025.
D. Gold ETFs Inflows
- In Q1 2025, gold Exchange-Traded Funds (ETFs) recorded net inflows of $21.1 billion, a 15% increase compared to the same period in 2024.
3. Economic Factors Supporting Gold
- Persistent Inflation: For example, inflation in the United States stood at 4.2% by the end of 2024.
- Falling Interest Rates: The US Federal Reserve started gradually cutting interest rates in 2025, boosting investor interest in gold over low-yield bonds.
Summary by Year
| Year | Average Gold Price | Key Events |
|---|---|---|
| 2023 | $1,825 – $2,050 | Start of geopolitical tensions, weakening dollar |
| 2024 | $2,050 – $2,300 | Persistent inflation, strong gold purchases |
| 2025 (April) | $3,391 | Peak global anxiety, sharp dollar decline, record inflows |
Second: Methods of Investing in Gold
1. Buying Gold Bars and Coins
- Advantages: Physical ownership, protection during crises.
- Disadvantages: Requires secure storage, insurance costs.
- Best for: Traditional long-term investors seeking safety.
2. Gold Exchange-Traded Funds (Gold ETFs)
- Examples: SPDR Gold Trust (GLD), iShares Gold Trust (IAU).
- Advantages: Easy to buy and sell like stocks, no physical storage needed.
- Disadvantages: Small annual management fees (typically less than 0.5%).
- Best for: Investors wanting easy gold exposure via stock markets.
3. Gold Mining Stocks
- Examples: Newmont Corporation, Barrick Gold.
- Advantages: Potential for higher profits if gold prices rise.
- Disadvantages: Risks related to company management and production costs.
- Best for: Investors seeking higher returns and willing to accept greater risks.
4. Gold Futures Contracts
- Advantages: Massive profit potential through leverage.
- Disadvantages: Extremely high risk – losses can exceed the initial investment.
- Best for: Professional traders only (not recommended for beginners).
Third: When to Buy and Sell Gold
When to Buy:
- After a price correction of 5%–10% following a significant rally.
- When there are signs of US dollar weakness (such as Federal Reserve rate cuts).
- During major global crises (wars, economic turmoil).
When to Sell:
- If gold surges by more than +20% in a few months, it’s wise to sell part of your holdings to secure profits.
- If the global economy improves significantly and central banks start aggressively raising interest rates.
