Be happy you lugged that gold bar all the way back from Costco when you did—because the precious metal is pricier than ever now.
Gold breached the $3,000 per oz mark today for the first time ever, a historic milestone to cap off a winning run for the currency.
The metal, whose reputation for being a safe haven against geopolitical chaos precedes it, has certainly been in demand lately. Between the stock market crashing, Trump’s game of retaliatory tariff whack-a-mole, the US sharply pivoting away from its historic geopolitical allies, and an ongoing war in Ukraine, investors can’t get enough protection against volatility.
Year to date, gold is up 14.81%, following a stellar 26% gain in 2024.
But investor interest in gold isn’t even the whole story: Since 2022, central banks have been growing their gold stockpiles by rapidly increasing purchases as they try to move away from relying so heavily on the US dollar.
In 2024, central banks purchased 1,045 metric tons of gold, over double the amount they acquired between 2011 and 2021, according to the World Gold Council. China, India, Poland, and Turkey are some of the largest buyers in the world.
“Gold has finally gotten above the $3,000 level, albeit slightly, and it's done it without much help from the western investor,” wrote Chief Investment Officer of Bleakley Financial Group Peter Boockvar in a note today. “The main buying continues to be foreign central banks and governments and I'm confident that the western buyers of gold will catch up and remain a sort of fresh buying powder. We remain long and bullish gold,” he added.
All that glitters
While gold has already raced past even the most bullish analysts’ expectations, most believe that the commodity won’t lose its sparkle anytime soon.
Last month, Goldman Sachs raised its price target for gold up to $3,100 per oz, up from its previous target of $2,890. And just yesterday, Macquarie Group said the commodity could reach as high as $3,500 per oz in the third quarter of the year due to concerns about the growing US budget deficit.
But if you aren’t a big Costco person, investing in gold ETFs, such as the SPDR Gold Shares (GLD), is just as good an option—although far less fun to show off.—LB
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