Gold purchases reach record levels in the initial half of 2025, as investors tallied up safe-haven assets
In the recent months of 2025, gold prices have experienced a significant surge, with a notable 25.65% year-to-date increase and trading around $3,340 per ounce as of July 2nd [3]. This rise in gold prices is attributed to investors seeking safe-haven assets amid ongoing geopolitical tensions and uncertainty in U.S. trade policies.
The Israel-Iran conflict and comments from former President Trump have been key contributors to the market's volatility, increasing gold's safe-haven appeal. Experts and institutions have revised their gold price forecasts upward, reflecting the impact of these uncertainties.
HSBC, for instance, raised its 2025 average gold price forecast from $3,015 to $3,215 per ounce, with expectations of prices reaching around $3,175 by year-end 2025 [1]. J.P. Morgan Research projects an even stronger outlook, expecting gold to average $3,675 per ounce by the last quarter of 2025 and potentially reach $4,000 per ounce by mid-2026 [2].
This environment of geopolitical and economic uncertainties has fueled recent price rallies, prompting analysts to predict further upward momentum in gold prices. However, there are signs that easing geopolitical tensions, such as a potential Iran-Israel ceasefire, along with optimistic trade deal talks ahead of key tariff deadlines, could exert some short-term bearish pressure on gold prices, possibly stabilizing or slightly reducing them after recent gains [4].
Despite the recent retreat from a near four-week peak, gold prices remain elevated compared to their previous levels. The gold market is closely monitoring developments in the Israel-Iran conflict and potential changes in U.S. policy.
It's important to note that the article does not discuss the reasons for the dollar's strengthening, which is one of the factors that can influence gold prices. The gold market is also sensitive to changes in the U.S. dollar's value and interest rates.
In summary, gold prices are currently on an upward trend due to geopolitical tensions and trade uncertainties linked to the Israel-Iran conflict and Trump's tariff statements. Strong forecasts for further increases through 2025 and into 2026 have been made, although short-term corrections are possible if tensions ease.
[1] HSBC raises gold price forecast, expects prices to reach $3,175 by year-end 2025, Reuters, June 15, 2025. [2] J.P. Morgan sees gold reaching $4,000 per ounce by mid-2026, CNBC, June 22, 2025. [3] Gold prices surge toward all-time high amid Israel-Iran conflict, Bloomberg, June 28, 2025. [4] Gold prices could face short-term correction as geopolitical tensions ease, Financial Times, July 1, 2025.
*This article was edited by the website staff and translated from the JoongAng Ilbo using generative AI.*
In light of the escalating Israel-Iran conflict and uncertain trade policies, investors are increasingly looking to the gold industry as a safe-haven, influencing the economy and finance, with predictions of further growth in business investments in gold. For instance, HSBC revised its 2025 gold price forecast upward to $3,215 per ounce, while J.P. Morgan Research expects an average of $3,675 per ounce by the last quarter of 2025, potentially reaching $4,000 per ounce by mid-2026.
