Is it a good time to buy gold now in 2025? The information and analysis you need to know

The global financial markets are full of risks, economic uncertainties, and political tensions. In such a situation, gold has once again become an attractive option for investors, as it has proven itself to be a reliable “safe haven” for money.

The year 2024 saw gold prices shock investors by soaring to an all-time high of $2,790 per ounce in October. The question on many people’s minds is Is it a good time to buy gold now in 2025? This article will help you see an overview of the gold market.

Why are gold prices continuously rising?

The continuous increase in gold prices is no coincidence but the result of multiple factors pushing prices upward.

Geopolitical and political factors make investors fearful and seek safety in gold. The ongoing war in Ukraine, tensions in the Middle East, and uncertainties from the US presidential election all stimulate people to buy and hold gold.

Central banks worldwide are also increasing their gold holdings. In the first quarter of 2025, net gold purchases reached 290 tons, 36% above the quarterly average. China, India, and Turkey are leading the purchases. These central banks are trying to reduce reliance on the US dollar and build more stable reserve assets.

Interest rates and the US dollar value also play a crucial role. The expectation that the Fed will cut interest rates in 2025 makes gold, which does not pay interest, an attractive option. Additionally, persistent high inflation drives people to seek assets that can hedge against currency devaluation.

Market outlook for gold prices in the future

Looking ahead, several factors support the potential for further increases in gold prices.

The strategic plans of major powers are shifting. China has increased its gold holdings from 1,900 tons to over 2,500 tons, indicating a long-term trend likely to support gold prices. India also plans to increase its gold reserve allocation from 7% to 10% by 2025.

Easing monetary policies—if the US Federal Reserve continues to lower interest rates, the dollar will weaken, providing a tailwind for gold ( because gold will become cheaper for buyers using other currencies).

Technical analysis shows that gold prices remain in an uptrend. Although recent corrections occurred, key support levels are at $2,447 per ounce. If prices stay above this level, it indicates strong buying momentum.

Perspectives from leading financial institutions

Most global financial institutions have a positive outlook for gold in 2025.

Goldman Sachs predicts gold will reach $2,700 per ounce, citing central bank demand and geopolitical risks as price catalysts.

J.P. Morgan is more cautious but remains optimistic, believing that rate cuts and central bank demand will support prices.

FX Empire has the most bullish outlook, estimating that in case of crises or escalated conflicts, prices could hit $3,000 per ounce in 2025.

Morgan Stanley and UBS expect prices to continue rising but advise caution against short-term speculation. UBS notes that recent profits are strong, but a short-term correction may be necessary.

Is now a good time to buy gold? Personal opinion

The answer depends on your individual situation.

For long-term investment (3-5 years), gold is a good diversification asset because it often moves inversely to stocks and other risky assets during volatile market periods.

For short-term investment (6 months - 1 year), caution is advised due to potential price swings. Have clear entry and exit plans.

An attractive investment proportion is to keep gold no more than 10-15% of your total portfolio. For example, with 1 million THB, investing around 50,000–150,000 THB in gold is appropriate.

Key entry points to watch

If you are interested in buying gold now, consider these points:

• When prices pull back near $2,447 per ounce, it’s a good support level.
• When prices drop below $2,500, it may be an opportunity to gradually accumulate.
• Use a “dollar-cost averaging” approach—divide your investment into 4-6 parts and buy gradually rather than all at once.

Prepare for risks

Although gold is a “safer” asset than others, it is not risk-free. During market volatility, prices could decline 10-15%, which must be accepted. In worst-case scenarios, declines could reach 20-25%. Therefore, if you invest 100,000 THB, be prepared for the value to drop to 75,000–90,000 THB in the short term before potentially recovering over the long term.

Summary: Buy gold now, but understand clearly

Is it a good idea to buy gold now? The answer is “Yes, but with a plan.”

Gold is a reasonable option in the current market, especially for long-term investment and diversification. However, invest wisely and ensure that:

1. You can hold the investment for at least 3 years.
2. Gold does not exceed 15% of your total investment portfolio.
3. You are prepared to tolerate short-term volatility without distress.
4. Gold investment is part of a diversified strategy, not short-term speculation.

The gold market in 2025 is expected to be quite strong, but financial institutions warn of possible short-term corrections. The most important thing is to plan carefully and avoid investing money you might need soon.