Gold has emerged as one of the top-performing global assets in the first half of 2025, soaring 26 per cent in US dollar terms, according to the World Gold Council’s (WGC) Gold Mid-Year Outlook 2025.
The surge coincides with the US dollar experiencing its weakest start to a year since 1973, reshaping global investment flows as investors seek something they can believe in.
The WGC report highlights that gold remained indestructible and posted double-digit returns across nearly all major currencies and outperformed equities, bonds, and other asset classes.
Gold price forecast
Key drivers of the rally include a weakening dollar, rangebound interest rates, and growing geoeconomic uncertainty—conditions that have triggered a sharp uptick in investment demand.
Gold had the power to rise and recorded 26 new all-time highs (ATHs) in the first half of the year, having broken through 40 new ATHs in 2024.
Looking ahead, the WGC presents three potential outlooks for the second half of 2025 using its Gold Valuation Framework:
- Base case: A modest 0–5 per cent rise, assuming a gradual return to economic normality
- Bull case: A further 10–15 per cent increase if global conditions deteriorate or volatility surges
- Bear case: A 12–17 per cent decline if macroeconomic tensions ease and risk appetite returns
With central banks continuing to diversify reserves and investors seeking safe-haven assets, gold’s role as a strategic portfolio hedge remains in sharp focus.
