After outperforming the S&P 500 and broader markets over the past two years, gold has cemented itself as one of the strongest asset classes heading into 2025. But the question remains — can gold’s rally continue?
Recent gains have been powered by powerful new forces. Central banks have doubled their annual gold purchases since 2022, while Asian investors — particularly Chinese ETF buyers — have stepped up as major market players. Together, these new participants have helped push gold prices to record highs.
Looking ahead, several familiar drivers could help keep gold’s momentum going:
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US rate cuts – The Fed’s renewed easing cycle reduces opportunity costs, making gold more attractive to investors.
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A weaker US dollar – Lower rates and policy risks could further erode dollar strength, a classic catalyst for higher gold prices.
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Safe-haven appeal – With inflation still sticky and global uncertainty high, gold remains a powerful portfolio hedge.
For Australian investors, the story doesn’t end there. Currency movements could shape returns in 2025, with a stronger AUD potentially favouring hedged gold ETF exposure.
Despite its incredible run, gold’s long-term case remains strong. Structural buying from central banks and Asian investors, paired with macro tailwinds, suggest the precious metal could continue to glitter through 2025 and beyond.
Read the full analysis from Global X to explore what’s next for gold — including charts, data, and insights on currency hedging — here.
