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Always believe in gold: Indestructible asset surges 26% in H1 2025 as dollar hits 50-year low

Always believe in gold: Indestructible asset surges 26% in H1 2025 as dollar hits 50-year low

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.
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Gold prices rise by Dh100 per gram in a year: Here is how much UAE residents gained
Gold prices rise by Dh100 per gram in a year: Here is how much UAE residents gained

Khaleej Times

time2 days ago

  • Khaleej Times

Gold prices rise by Dh100 per gram in a year: Here is how much UAE residents gained

Gold prices in the UAE have surged by approximately Dh100 per gram over the past year, prompting many residents to call their gold jewellery purchases one of the best investment decisions they've made. Last summer, the 22K gold variant was trading between Dh279 and Dh290 per gram. As of Wednesday, it was priced at over Dh380 per gram. According to World Gold Council data, the price has been steadily rising since the third quarter of 2023. Prices have risen by nearly $800 per ounce year-on-year in the first quarter of 2025. Data showed that gold price averaged $1,928.5 per ounce in Q3 2023, rising to $1,971.5 in the fourth quarter of that year. In 2024, price averaged around $2,069.8 per ounce in the first quarter, rising to $2,338.2 in Q2, $2,474.3 in Q3, $2,663.4 in Q4 and $2,859.6 in the first quarter of 2025. 'When I bought gold in 2024, the 22K price was around Dh290 per gram,' said Rajitha Nair, a PR and corporate communications professional. 'I used to check rates regularly and felt it was a good time to invest. With prices now above Dh380, the same purchase would be significantly more expensive today. It really shows how much value gold has gained in just a year.' Rajitha considers her gold jewellery purchase both emotionally meaningful and financially smart. 'I'd say it's one of the most rewarding investments I've made. A Dh100-per-gram gain in a year is substantial — especially for something I love to wear as well.' She added, 'Jewellery is a tangible asset with emotional value. While coins and bars are great for pure investment, jewellery offers personal satisfaction and beauty.' Another long-time UAE resident, Pooja S., a sales and marketing executive, also purchased gold jewellery last year when 22K gold was priced at Dh277 per gram. 'With prices up by about Dh100 per gram now, I would have spent roughly Dh2,450 more for the same pieces today,' she said. Hold, don't sell Pooja also invests in gold bars and coins, viewing the metal as a safe and reliable store of value. Rajitha advised fellow residents to hold on to their gold rather than selling it at this stage. 'With prices climbing steadily, I think it's wise to wait. A little patience now might result in better returns later,' she said. She also emphasised the enduring significance of gold. 'Gold remains relevant regardless of the economic climate. It's not just about financial returns — it represents cultural heritage, security, and timeless beauty. Especially in our region, gold is both an investment and a tradition.' What do jewellers say? According to Nirmal Kumar, senior executive at Yogesh Jewellers, a Dh100-per-gram increase within a year is 'remarkable". 'For many clients, especially those who bought in early 2024, gold has proven to be both a profitable and sentimental investment — something beautiful that appreciates in value,' he said. 'Coins and bars are ideal for pure investment, but jewellery offers both value and experience. Whether for wealth protection, gifting, or legacy planning, gold — especially 18K and 21K jewellery — blends tradition, security, and return on investment.' Aditya Singh, head of international jewellery business at Titan Company (Tanishq), noted a transformation in both consumer behaviour and retail strategy over the past year. 'We've seen a shift toward lighter, modular, and versatile designs that are wearable on multiple occasions and more affordable. Younger consumers are driving this demand — they're looking for jewellery that reflects their personal identity through customisation, storytelling, and modernised traditional design,' he said. 'Today's customers want transparency on pricing, making charges, sourcing, and certifications. Retailers that lead with authenticity and meaningful value — not just discounts — are earning long-term trust.'

Always believe in gold: Indestructible asset surges 26% in H1 2025 as dollar hits 50-year low
Always believe in gold: Indestructible asset surges 26% in H1 2025 as dollar hits 50-year low

Arabian Business

time16-07-2025

  • Arabian Business

Always believe in gold: Indestructible asset surges 26% in H1 2025 as dollar hits 50-year low

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.

World Gold Council: Gold prices rise 26% in H1; see outlook for H2
World Gold Council: Gold prices rise 26% in H1; see outlook for H2

Gulf Business

time16-07-2025

  • Gulf Business

World Gold Council: Gold prices rise 26% in H1; see outlook for H2

Image: Getty Images/ For illustrative purposes Gold surged 26 per cent in the first half of 2025, notching 26 all-time highs and outperforming major asset classes as investors flocked to the safe-haven metal amid a weaker US dollar, stagnant bond yields, and mounting geopolitical tensions, according to the The WGC report, titled 'Downhill or Second Wind?' , explores whether gold has peaked or still has room to run in the second half of the year. It projects that gold could rise a further 0 per cent to 5 per cent under current consensus expectations. However, deteriorating macroeconomic conditions, including stagflation or recession, could drive gold prices up another 10 per cent to 15 per cent, while widespread conflict resolution may lead to a 12 per cent to 17 per cent decline. 'Gold has continued its record-setting pace, rising across all major currencies, and showing remarkable strength in the face of a volatile global backdrop,' the WGC report stated. Strong demand, ETF flows H1 2025 saw average daily gold trading volumes reach a record $329bn, bolstered by robust over-the-counter activity, exchange-based trading, and renewed inflows into gold-backed ETFs. Global ETF assets under management surged 41 per cent to $383bn, with holdings rising by 397 tonnes to 3,616 tonnes – the highest since August 2022. Central banks maintained strong buying momentum, though slightly below record levels, continuing the trend of diversification away from U.S. dollar holdings. The WGC's attribution model indicates that opportunity cost factors, such as a weakening dollar and stagnant yields, contributed 7 per cent to gold's return, while risk and uncertainty added 4 per cent. Dollar falters, gold gains The 'Trade-related geopolitical risks played a large role, not just directly, but by fuelling moves in the dollar, interest rates, and broader market volatility – all of which fed into gold's appeal,' the report noted. H2 scenarios: range-bound or breakout? Consensus forecasts suggest below-trend global growth and persistently high inflation in the second half, with US CPI expected to reach 2.9 per cent. The Federal Reserve is anticipated to cut interest rates by 50 basis points by year-end. Under this base case, gold is expected to consolidate with potential modest gains. The WGC warns that more severe scenarios – such as intensified stagflation, recession fears, or escalated geopolitical tensions – could prompt a stronger rally. Conversely, a return to economic stability and easing geopolitical risks could lead to reduced investment flows into gold and a steeper pullback. Even in a bearish scenario, however, the WGC sees $3,000/oz as a natural support level, noting that lower prices could revive consumer demand and discourage recycling. Outlook: Structurally resilient While the report acknowledges the unpredictable nature of the global macro environment, it concludes that gold remains well-positioned as a strategic asset. 'Given the intrinsic limitations of forecasting the global economy, we believe gold – through its fundamentals – remains well positioned to support tactical and strategic investment decisions in the current macro landscape,' it said. At the end of June, gold stood at $3,287/oz, with a record high of $3,434 reached on June 13.

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