Global Gold Prices Strengthen Again in Early 2025, Setting a New Record

After a decline at the end of 2024, global gold prices strengthened again in early 2025, reaching a new record high.

According to World Bank data, in January 2025, the average price of 99.5% fine gold (London Fix Afternoon Price) reached US$2,709 per troy ounce.

This price was up 2% compared to December 2024 (month-on-month), up 33% compared to January 2024 (year-on-year), and the highest price in the World Bank's records.

According to the World Gold Council (WGC), the rise in gold prices at the beginning of the year was influenced by investor concerns about a trade tariff war between the United States (US) and several countries.

"The gold price in January closed at an all-time high in all major currencies, amid fears of a trade tariff war, as well as a weakening US dollar and bond yields," said the WGC in its Gold Market Commentary (February 10, 2025).

The WGC also assessed that there is potential for gold prices to strengthen further, influenced in part by the German elections.

"The German elections may not be closely watched by many, given the noise surrounding the US trade tariff war. However, the German elections could trigger positive growth prospects, which could support the strengthening of the euro against the US dollar," said the WGC.

"A weakening US dollar is not a common view, but unexpected pressure on the US dollar could signal further support for gold," it continued.