Gold Price Drops 0.60% to $3,353 Amid Market Volatility

The price of gold as of 9:20 a.m. Eastern Time on June 20, 2025, stood at $3,353 per ounce, marking a $20 decrease from the same time the previous day. This price represents a significant increase of more than $1,031 from the same period a year ago. The price of gold yesterday was $3,373, indicating a 0.60% increase from the previous day. One month ago, the price was $3,315, showing a 1.13% decrease from the current price. One year ago, the price was $2,322, reflecting a 30.75% increase from the current price.

Gold is often considered a suitable investment for those seeking stability during turbulent economic periods. Historically, gold has appreciated over time, making it a popular choice for investors looking to diversify their portfolios. A gold IRA is one of the most popular ways to buy and hold gold, providing portfolio stability during market volatility. It is also 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. During 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. During periods of economic instability, gold is considered a safer, risk-averse asset. Many investors view it more as a store of value than as an investment like stocks or bonds.

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.

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. 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.

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. Mutual funds or ETFs holding gold assets. Like other ETFs, 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.