Expert Gold Price Predictions for 2025 and Beyond: CFPs Weigh In

Gold has long been valued as a hedge against inflation and a safe haven during tumultuous times. So it may be no surprise that gold prices hit record highs in 2024. Years of inflation, along with conflict in Ukraine and the Middle East, led many investors to turn to gold to protect the value of their portfolios.

But will gold prices continue to trend upward? We asked two certified financial planners for their gold price predictions for 2025 and beyond. Here’s where they think gold is trending and whether there are better investments to consider.  

Table of Contents

1. Current trends in gold prices
2. Factors that influence gold prices
3. Expert price predictions for 2025
4. Long-term outlook: Beyond 2025
5. Is 2025 a good time to invest in gold?
6. How to invest in gold 
7. Risks of gold investment

Current trends in gold prices

The spot price of gold has seen dramatic gains in the past year. It hovered around $2,000 per troy ounce in January and February 2024 before leaping in March and April to settle around $2,300 per ounce. By the final quarter of 2024, gold prices broke records repeatedly and hit a high of nearly $2,800 in October.

In February 2025, the price of gold was around $2,600 per ounce. Overall, gold prices are up more than 30% since the start of 2024.

Several factors have helped fuel that growth, including geopolitical concerns, a weaker dollar, and China’s decision to resume buying gold. Given the ongoing nature of these factors, many observers expect demand for gold to continue into the new year.

Factors that influence gold prices

Three main categories of factors that influence the price of gold are economic, geopolitical, and government.

Economic indicators

Within the economic category, three indicators can be linked to gold prices:

1. Inflation: Gold has historically held its value so many people turn to it as a hedge against inflation. Investors see it as an asset protecting their wealth from losing purchasing power. When inflation rises, demand for gold goes up—and its price follows.
2. Interest rates: The price of gold has a negative, or inverse, relationship with interest rates. That means that when interest rates are low, the price of gold increases. But when interest rates are high, the value of gold declines. This is because investors may vary how much gold they buy and hold based on how much they could earn in other interest-bearing accounts.
3. Strength of the dollar: Traditionally, gold prices and the dollar’s strength have also had an inverse relationship. When the dollar is strong, investors may want to keep their money in currency and demand for gold weakens. Meanwhile, gold may become a more appealing purchase when the dollar loses its value.

Geopolitical events

The value of gold is also influenced by the current state of affairs in the world. With upheaval, conflict, and uncertainty, demand for gold seems to increase. Precious metals and gold are seen as safe havens in these situations since their value isn’t tied to any one currency.

In 2024, the wars in Ukraine and the Middle East probably helped push the price of gold upward. With no obvious end in sight, they may continue to keep gold prices elevated in 2025.

Central bank policies 

Like other goods, the price of gold is subject to the law of supply and demand. There is a limited supply of gold in the world, and the more people want to purchase it, the higher its price can be expected to climb.

One of the world’s largest gold buyers is government central banks. They purchased 1,037 tons of gold in 2023, according to J.P. Morgan. The World Gold Council reports that Turkey, India, and Poland were the largest central bank buyers of gold in 2024. And with China resuming gold purchases in the fourth quarter of 2024, government demand for gold may be expected to continue into 2025.

Expert price predictions for 2025

From what I understand, gold will continue to be a good hedge during uncertain times. With a change of administration and geopolitical instability contributing to the uncertainty, gold prices will likely maintain their current value or slightly increase.

Gold prices have been on a significant run in the last few years, with returns in 2024 near 30%. To forecast gold price trends, one must understand the macroeconomic conditions with which gold appreciates or depreciates in value. As with any other currency or good, many factors impact the price of gold:

• The largest factor is simply the demand for gold. 
• Another large influence is global treasury rates. As interest rates rise, investors tend to invest less in gold, as they can get a consistent rate of return out of government treasuries. As interest rates decrease, investors seek returns elsewhere, which could drive up demand for gold. 
• Currency valuations also factor in, as investors will want to own rising currencies. In contrast, they typically will invest in gold if they fear currency valuations are falling. Geopolitical uncertainty has another large impact on gold, which drives demand. Investors seek alternative methods for “safer” returns as global tensions and fears rise.

With all that being said, we are left with the next-to-impossible task of forecasting the price of gold over the next year. While the likelihood of interest rates decreasing and geopolitical uncertainty rising, it seems like 2025 offers an attractive time for gold prices to increase. Will that hold true, or did the runup in gold prices in 2024 reflect those fears already? My prediction is that gold will not have anything close to the year it had in 2024 and will produce inflation-like returns. If there is a black-swan event and geopolitical tensions arise or aggressive tariffs are issued, gold could perform better than I expect.

Long-term outlook: Beyond 2025

There is no crystal ball to predict what will happen with the price of gold (or any other commodity/asset) within the next five years, but historically, gold has been a hedge against inflation and global uncertainty. 

Another factor to consider is the technological advances being made to make investing in gold more automated, which will foster greater access and potentially a higher demand for gold.

I resort back to the two main drivers of gold prices (in my opinion): demand and economic conditions. 

I expect that there will be a rise in geopolitical uncertainty over the next five years, while also being in an environment of flat interest rates. A rise in geopolitical uncertainty will likely lead to an increase in the price of gold. In contrast, less interest rate movements will provide little incentive for investors to choose gold over treasury bonds.

Who will be the buyer of gold over the next five years? Most retail investors who want to own gold already do. In my opinion, the main driver for demand will be foreign governments seeking diversification from the U.S. dollar. The likes of China can be massive buyers of gold over the next five years, which could result in price appreciation. Who’s to say?!

Is 2025 a good time to invest in gold?

I think any year is good to invest in gold as long as it is part of a well-diversified portfolio and not more than 5% to 10% of your total portfolio. An alternative could be cryptocurrency, as long as you understand the risks and invest no more than 5% to 10% of your total portfolio value.

I do not believe that 2025 is a good time to invest in gold. The 2024 rise in gold prices for an asset that appreciates on nothing more than speculation and inflation lead me to advise away from purchasing gold. From unforeseen costs, such as maintenance expenses and fees to the fact that gold has very little productive value, I have enough reasons to advise clients to invest their money elsewhere.

When reviewing alternative investment solutions, it entirely depends on the investor’s goals and risk tolerance. Are they seeking long-term protection from inflation? The stock market has historically been the best option for that. Are you in fear of the U.S. or the global economy? Buy U.S. treasuries—they have a better historical track record to secure your money while offering interest payments. Long-term growth for retirement? Stock market again!

How to invest in gold 

If you’d like to invest in gold, you have several options. The right one for you depends upon your personal preferences and your investment goals. Here are three popular choices.

• Gold IRA: If you are saving for retirement, a gold IRA comes with valuable tax advantages. Depending on whether you choose a traditional or Roth account, you may get a tax deduction for contributions or tax-free withdrawals in retirement.
• Gold bars and coins: For those who want to store gold at home, purchasing gold bars and coins is the best way to have precious metals at your fingertips whenever you need them. Before going this route, be sure you have a secure location and appropriate insurance coverage.
• Gold exchange-traded funds (ETFs): Some people want to invest in gold without actually owning physical gold. In that case, gold ETFs can be a good choice. These funds hold gold so their value closely tracks gold prices. They also trade like stocks, which makes them easy to buy and sell.

If you are interested in a gold IRA, check out our top picks below.

Risks of gold investment

Like all investments, gold comes with risks. These include the following:

• Price volatility: While gold is known for holding its value over time, its price fluctuates daily. That means it can be prone to dips and is often not recommended as a short-term investment.
• Market risk: Just as the stock market can decline in value so too can gold if demand drops. Gold can also be subject to changes in value based on external factors such as regulatory changes and government policies.
• Liquidity: If you have invested in physical gold, you’ll need to sell it if you need cash. While gold has traditionally always been in demand, finding a buyer and agreeing on a price makes the process of liquidating gold more difficult than, say, selling stocks.

If you are still debating whether to invest in precious metals, read more about whether now is a good time to buy gold.