Gold Drops 1.75% to $3,263 as Inflation Drives 28.69% Yearly Gain

The price of gold as of 9:05 a.m. Eastern Time on June 27, 2025, stood at $3,263 per ounce, marking a $57 decrease from the same time the previous day. This price represents a significant increase of over $936 from the same period a year ago. The price of gold yesterday was $3,320, indicating a 1.75% increase from the previous month. One month ago, the price was $3,289, showing a 0.80% increase. One year ago, the price was $2,327, reflecting a 28.69% decrease from the current price.

Gold is often seen as a stable investment option, particularly during times of economic uncertainty. It is considered a safer, risk-averse asset and is viewed more as a store of value than as an investment like stocks or bonds. Historically, gold tends to appreciate over time, making it a popular choice for investors seeking portfolio stability during turbulent markets. A gold IRA is one of the most popular ways to buy and hold gold, providing a practical solution for investors who prefer not to deal with the logistics of storing physical gold bullion.

However, gold is not always a guaranteed winner. In robust economic periods, equities can outperform both in the short and long run. From 1971 through 2024, the stock market’s average annual return was 10.7%, while gold’s was 7.9% over the same span. The spot gold price refers to the immediate purchase or sale price of gold in an over-the-counter transaction. This metric helps investors gauge current demand and market trends. A higher spot gold price signals stronger demand. Unlike futures contracts, the spot price is for instant delivery.

Numerous factors can influence the spot price, causing it to fluctuate frequently. Prospective gold investors should be comfortable with this level of price volatility. A price spread is the gap between the price at which an asset can be purchased and the price at which it can be sold. In gold trading, these are called the ask price (the cost to buy) and the bid price (the amount you’d receive selling). The bid price is always less than the ask price. A narrower spread indicates a more liquid market. When the spread is tight, it suggests rising demand for gold.

If the future price exceeds the spot price, this is known as contango, common in commodities with significant storage costs. If the futures price is below the spot price, the market is in backwardation. Gold is frequently traded via exchange-traded funds (ETFs). James Taska, a fee-based financial advisor, notes that it is much easier to rebalance a client’s allocation of gold if it is owned as an exchange-traded fund (ETF), and the spread when attempting to buy/sell gold can be quite variable and wide.

Common gold investment options include gold bars, gold coins, gold jewelry, gold futures contracts, and gold funds. Gold bars, known as bullion, are sold by weight (gram or ounce), with purity, weight, and manufacturer details stamped on the bar. Gold rounds are another form you may find bullion in. Gold coins, such as the American Gold Eagle, often carry a premium over bars of equivalent weight due to their rarity and collectible status. Gold jewelry’s price usually exceeds its gold content value due to design and craftsmanship. Gold futures contracts allow investors to agree on a set price for gold at a future date, enabling speculation without physical delivery. Gold funds, such as mutual funds or ETFs, hold gold assets and their value fluctuates with the underlying holdings.

Determining whether now is the optimal time to invest in gold is somewhat subjective. However, gold can help diversify portfolios and cushion against market swings. Currently, gold remains a stable asset amid high market volatility. Prices have reached record levels, climbing over 25% since early 2025, driven by persistent inflation and economic uncertainty. Many experts recommend adding gold to diversify holdings. Silver, platinum, and palladium are also popular portfolio additions. Gold is generally less volatile than silver, which can swing widely even within a single day. Silver’s industrial uses make it more sensitive to economic shifts. Platinum and palladium behave similarly to silver. While these rare metals can add diversification, they tend to fluctuate more than gold.

The U.S. economy has experienced significant changes in recent years, with prolonged inflation taking a toll. Gold can act as an inflation hedge within a portfolio. Thanks to various acquisition methods, it’s a relatively accessible asset for investors, regardless of experience. Whether you choose a gold IRA or a more active investment account, gold can help achieve both short- and long-term financial goals. Many investors prefer gold ETFs, which offer a managed selection of easily traded assets. Gold is often chosen by those seeking portfolio diversification and inflation protection. There are many accessible ways to invest in gold. Gold coins are considered collectibles and may have a higher value per ounce than bars. Their collectible and historical appeal can make them attractive to some investors. Additionally, U.S. minted coins can help safeguard buyers against counterfeit bars.