In Q1 2025, gold has demonstrated its strength as a safe-haven asset, reaching unprecedented heights. The World Gold Council reports a rapid price increase from US$2,500 to US$3,000 per troy ounce in just 210 days, continuing a trend from 2024 where the metal hit 40 new all-time highs. By the end of March 2025, gold reached $4,972.98 per ounce, peaking at $5,041.50 on April 1st.
Market analysts attribute this surge to various factors, including a weakened US dollar, rising geopolitical risks, and falling interest rates. Lowered interest rates by the Reserve Bank of Australia in February, coupled with trade policies and executive orders such as those signed by former US President Donald Trump to increase domestic mineral production, have further boosted gold’s appeal. Tensions such as the Israel-Gaza conflict also amplified gold’s value. Industry executives from companies like Alice Queen (ASX:AQX), Pacgold (ASX:PGO), and Toubani Resources (ASX:TRE) express a bullish outlook, noting that the market sentiment is strong. While investment has focused on established producers, there are signs of increasing interest in junior explorers as well. Experts predict that gold will maintain its upward trajectory, potentially reaching US$3,300 per troy ounce by year-end.
