Ranking of Gold in H1

                                                            

  • According to the World Gold Council’s (WGC) mid-year report released on Tuesday, gold jumped by 26% in the first half of 2025, reaching 26 record highs and outperforming most other investments as investors turned to the safe asset due to a weaker US dollar, flat bond returns, and rising global tensions. 
  • Gold rose nearly 26% during the first six months of 2025, making it the best-performing investment. 
  • The WGC report predicts that gold could increase by another 0% to 5% based on current expert forecasts.

 

                           
                            HOW THE RISE IN GOLD PRICE AFFECTS THE MARKET


Gold’s rise reflects the weakening of the U.S. dollar.Gold has kept up its record-breaking streak, gaining across all major currencies and showing strong performance despite global instability, the WGC report noted. Multiple factors supported gold’s strong market in the first half of the year. These included a weak U.S. dollar, stable bond yields with expectations of more Federal Reserve rate cuts later in the year, and growing global tensions such as trade disputes and ongoing military conflicts. Central banks continued to buy gold actively, though purchases were slightly below previous highs. This trend shows a move away from U.S. dollar reliance. According to the WGC’s analysis, factors like a weakening dollar and low yields contributed 7% to gold’s gains, while increased risk and uncertainty added another 4%. Due to global concerns regarding US trade policies and political priorities, the US dollar had its worst start to a year since 1973. The US dollar faced reduced demand as the market pushed the investors towards the gold market instead. 

 

                      HOW THE RISE IN GOLD AFFECTS THE H2 (REST OF 2025)


  • Although the report recognizes the uncertain nature of the global economic environment, it concludes that gold is still in a strong position as a valuable long-term investment.
  • Experts predict slower-than-normal global economic growth and continued high inflation in the second half of the year, with U.S. consumer prices expected to rise by 2.9%.
  • In the likely scenario of lower interest rates by the end of the year, gold will hold steady with the possibility of little gains.
  • Even with a more pessimistic outlook, the WGC views $3,000 per ounce as a likely price floor, suggesting that falling prices could boost consumer interest and reduce the amount of gold being recycled.