Gold prices reached an all-time high on Saturday, breaking through the $2,800 mark for the first time. It was the second record-breaking day for gold, which had reached $2,798.96 per ounce on Friday after President Trump renewed tariff threats against Canada and Mexico.

The gold rush gathered pace ahead of expectations President Trump would make good on those threats and issue tariffs by executive order on Saturday afternoon.  Investors flocked to the precious metal over volatility concerns, with the gold price up more than 5 per cent over the last thirty days to reach $2,805 on Saturday afternoon.

Gold often performs well amid uncertainty, as it is considered a safe-haven asset for investors. With major turbulence expected to hit international trade and heighten existing volatility, many analysts think there could be a real opportunity in gold right now.

Is there an opportunity in gold right now?  

The gold price is not a flash in the pan, the precious metal has been seeing consistent price increases in recent years. The gold price is up 77 per cent over the last five years and 564 per cent over the last two decades. Its price has been driven up by massive demand from central banks, particularly from China, inflationary pressures in the US and an extended period of volatility which saw pandemic and war rock the markets.

In April last year when gold broke through $2,400 for the first time, the deVere Group told investors that a confluence of factors would mean gold would continue to rally into 2025. Speaking at the time the deVere CEO Nigel Green said:

“Why is the dollar depreciating? Well, whilst the Fed has got interest rates high, the government has insisted on adding more dollars to the economy. Why? There’s an election coming up – and I don’t think it’s going to change afterwards.”

Those predictions have now been born out, with The Fed resisting political pressure to cut rates while US government spending continues to climb. Weighing in on the recent record-breaking rally, Mr Green told investors with increased volatility looming they should continue to consider gold. Commenting on Saturday, he said:

“Tariffs increase uncertainty, particularly for industries reliant on stable energy costs, such as manufacturing, transportation, aviation, and logistics. This move introduces another layer of unpredictability at a time when markets are already contending with monetary policy shifts and geopolitical risks,

“Investors should consider diversifying their portfolios to hedge against heightened volatility and potential trade disruptions by increasing exposure to defensive sectors such as healthcare, utilities, and consumer staples, as well as exploring alternative assets like gold and real estate.”

How high will gold go in 2025?

Gold demand has been so intense in recent days it has resulted in shortages in London and eight-week queues to withdraw it from the Bank of England. The gold price has been in the ascendency over stubborn inflation and geopolitical uncertainty for some time and has been given a fresh boost by volatility emerging from the US election. Analysts think gold is poised to continue to do well – though some warn the rally could tail off toward the end of the year.

Suki Cooper at Standard Chartered said gold’s fate could be tied to interest rates, and what The Fed does with them. In comments to the FT, she said:

“There is a lot of concern over tariffs…Gold’s safe-haven appeal really kicks in, when there is a broad-based asset risk.

“If we see further rate cuts in the first half of the year, that would support gold, then that tailwind will subside in the second half of the year,”

The outlet also reported that MUFG, Japan’s largest financial group, had told clients that gold had “The impetus to go much further in the short term” with its price is buoyed as “emerging market central banks continue to purchase bullion.”

Gold looks set to benefit from investor gloom over government debt and geopolitics, research director at BullionVault, Adrian Ash, told CNBC earlier this month, highlighting the precious metal’s value as a hedge against volatility.

Analysts at Goldman Sachs forecast that gold will reach $3,000 per ounce by the end of 2025. The forecast, which was produced before Trump’s election win, cites reserve bank demand for gold as the driving factor behind the bullish prediction. But with major new trade tariffs set to land, those forecasts may look conservative in hindsight.

But not everyone sees a great year for gold. Emma Wall, head of platform investments at Hargreaves Lansdown believes gold will hold – but not make ‘great gains.’ Speaking to This is Money earlier this month, she said:

“While we don’t think it makes great gains this year, we do think it will hold its value and provide a useful diversifier in the face of both inflation and – sadly likely – continued geopolitical shocks.”

Gold analyst Sanjiv Arole said he believes there will be uncertainty around the gold price in 2025, but that it “seems all set to cross the $3,000 per ounce target” this year, writing:

“For 2025, forecasting of precious metals prices could not be expected to be simplified in any way. Throw Trump into the mix and one can imagine the degree of difficulty for gold price forecasters moving ahead. Indeed, ever since Trump came on the scene after his election as President of the USA, things have not been the same, even more so for the precious metals markets.”

Is gold a good investment in 2025?

On Saturday, January 31, gold prices exceeded the $2,800 mark for the first time. It was the latest in a series of record-breaking feats which has seen the price of the precious metal up 36 per cent in the last year. This surge is attributed to a confluence of factors, including renewed tariff threats by President Trump against Canada and Mexico, which have heightened market volatility and driven investors toward gold as a safe-haven asset.

Historically, gold has been a preferred investment during periods of economic uncertainty. Over the past five years, its price has increased by approximately 77 per cent, and over the last two decades, it has risen by 564 per cent. This precipitous increase has been fuelled by substantial demand from central banks, notably China, as well as persistent inflationary pressures in the U.S. and global events such as pandemics and geopolitical conflicts. Many analysts think that demand is here to stay and could drive gold to $3,000 by year’s end, which is the bullish case.

The recent record-breaking rally has led to significant demand for physical gold, resulting in shortages in London and extended wait times for withdrawals from the Bank of England. Analysts suggest that gold’s performance in 2025 will be closely tied to interest rate policies. Suki Cooper of Standard Chartered noted that if the Federal Reserve implements rate cuts in the first half of the year, it could support gold prices, though this tailwind may subside in the latter half of the year.

Looking ahead, forecasts for gold prices vary. Analysts at Goldman Sachs have projected that gold could reach $3,000 per ounce by the end of 2025, citing central bank demand as a primary driver. Similarly, J.P. Morgan strategists have forecasted that gold will average $2,950 per ounce in 2025, with the potential to rise toward $3,000, linking the increase to economic uncertainties stemming from the Trump administration’s policies.

Nigel Green, CEO of the deVere Group, has told investors that with volatility ahead they should be exploring ways to diversify their portfolio. After correctly forecasting that gold would continue to break records through Q1 2025, the finance chief says investors should be exploring gold – among other things – to help hedge against volatility. With inflation remaining stubborn, central banks buying up gold and trade barriers threatening to disrupt global trade, gold could continue to do well throughout 2025. More bearish voices see gold holding its value, rather than making great gains – and while it’s not clear where gold will land by the end of the year – the precious metal is on a strong run right now as it benefits from an uncertain financial landscape.