Gold prices continue their remarkable ascent, climbing 2% this week to $3,357 per ounce, with State Street Global Advisors forecasting a potential surge to $4,000 within the next six to nine months. The asset management firm’s Gold 2025 Midyear Outlook suggests even more dramatic gains ahead, with prices possibly testing $5,000 per ounce over the next 12-24 months.
According to Aakash Doshi, State Street’s head of gold strategy, four key factors are propelling gold’s appreciation: market volatility stemming from Trump’s trade policies, concerns over U.S. debt levels, dollar weakness, and sustained central bank gold purchases. The precious metal has gained an impressive 98% since the WHO declared the coronavirus pandemic in March 2020, with a 25% rise in 2025 alone.
As economic uncertainty persists—including questions about inflation, the $36.2 trillion U.S. deficit, and geopolitical tensions—investors are increasingly viewing gold as a portfolio diversifier and hedge against tail risks. Gold’s appeal lies in its unique characteristics: it carries no counterparty risk, doesn’t depend on repayment, and doesn’t need to generate yield to justify its portfolio role.