Will Gold Prices Keep Rising in 2025?

With the recent rise in gold prices, more and more people are investing in gold.
Gold has shown a strong price rally since 2024, which means global money is flowing into gold investments.
Generally, gold and the dollar have opposite characteristics.
The conventional wisdom has been that when the dollar rises, the value of gold falls relatively, and conversely, when the dollar falls, the price of gold rises.
However, in a situation like now where the U.S. stock market is soaring, it is unusual for the price of gold, a safe-haven asset, to rise at the same time.
As of January 13, 2025, 1 don (3.75g) of gold is trading at 489,675 won. (For gold prices, refer to the prices traded in real time on the Korea Exchange)
Gold has risen more than 30% compared to January last year.
So why has the price of gold risen?
The media analyze the reasons for the rise in gold prices as follows.
First, gold prices have trended upward over a long period, and recently speculative demand has joined in.
Second, geopolitical risks stemming from the Middle East have escalated, strengthening the desire to hold safe-haven assets as well.
Third, declining gold mining has worsened the supply chain, leading to a shortage in gold supply and demand.
But in addition to the reasons above, there is one more important reason.
Central banks around the world have been steadily buying gold.
Gold prices are usually affected by changes in U.S. interest rates, but central banks around the world are buying gold, which can replace the dollar, in order to limit the influence of the U.S. dollar.
In particular, China, which has a hostile relationship with the United States, has significantly increased its gold purchases.
Many reports state that, due to this, the value of gold is rising despite the strong dollar.
Then what is the outlook for 2025?
Many media outlets expect that central banks around the world will continue buying gold as they are now.
On top of that, with U.S. interest rate cuts also expected, the prevailing outlook is that gold prices will stay strong as they did last year.
When buying a first-birthday gold ring or gold accessories, rather than being surprised by how much gold prices have risen, now seems like a good time to consider investing in gold in advance.
In addition, if President-elect Trump continues to insist on America First, we can predict that the rise in gold will continue.