Is investing in gold good in 2025? Analyze the driving factors behind the price and suitable trading strategies

Amidst volatile market conditions, gold has once again become the main focus of investors worldwide, especially as gold prices reach the highest point since recording began in 2024. The question many are asking is Is investing in gold good right now? This article aims to help clarify your doubts with a comprehensive analysis.

What caused the recent rise in gold prices

Gold prices did not rise by chance. Various macroeconomic and institutional factors combined to push prices higher than expected.

Escalating conflicts increase risks

The war in Ukraine, tensions in the Middle East, and political uncertainties in the US all prompted investors to seek safe-haven assets. Gold thus became their primary choice.

Central banks around the world increase accumulation

This may be the most significant indicator. In the first quarter of 2024, central banks bought a net total of 290 tons of gold, which is 36% above the quarterly average. China, India, and Turkey lead in gold accumulation to reduce reliance on the US dollar.

Expectations regarding interest rates

Speculations that the Fed will cut interest rates in 2024-2025 make gold (, which does not yield interest), more attractive.

Concerns over macroeconomic conditions

Demand for safe assets against inflation and the US budget deficit all make gold investment a risk hedge.

Will gold prices continue to rise?

Financial institution forecasts

Goldman Sachs predicts prices will reach $2,700 per ounce by the end of 2024. FX Empire has the most optimistic outlook, suggesting that if conflicts escalate, prices could hit $3,000 per ounce in 2025. Morgan Stanley expects $2,800 per ounce, while UBS is more cautious, warning that the recent sharp increase may require a correction.

Technical analysis signals

Key support is at $2,447 per ounce, with resistance at $2,800. The RSI index, which has declined, indicates the market is oversold. The MACD also signals a positive trend if it can rise above the Zero Line.

Is investing in gold good? For whom and how

Important timeframes for strategy

For long-term investment of 3-5 years or more, gold helps diversify risk because it often moves inversely to stocks and risky assets. However, for short-term investments of 6 months to 1 year, caution is needed due to volatility, and clear entry-exit points should be set.

Safe allocation

Experts recommend allocating 5-10% of your portfolio to gold. For a 1 million baht investment, this means 50,000-100,000 baht. It should not exceed 15-20% to maintain balance.

Dollar-Cost Averaging strategy

Instead of a lump-sum investment, divide your funds into 4-6 parts and buy gradually as prices decline. An attractive entry point is near $2,447 or below $2,500 per ounce.

Preparing for risk

Although gold is a safe asset, there is still a risk of a 10-15% loss in the short term, or up to 20-25% in severe crises. For example, if you invest 100,000 baht, be prepared for it to drop to 85,000-90,000 baht, or in worst cases, 75,000-80,000 baht.

Is investing in gold good now? Summary

Yes, if you have a long-term mindset Gold prices are driven by many supporting factors, including geopolitics, central bank accumulation, and monetary policies. Most leading financial institutions have a positive outlook on gold prices.

No, if you need liquidity soon Short-term volatility may not suit those planning to use their money within the next year.

Most importantly, assess your risk tolerance. Do not invest with money you might need urgently. Make gold part of a long-term strategy and diversify your investments across multiple asset classes.