Gold Prices Drop 0.7% Daily But Up 31.29% Year Over Year

Gold prices experienced a slight decline on June 17, 2025, trading at $3,391 per ounce at 9:10 a.m. Eastern Time. This represents a $24 decrease from the same time the previous day, when gold was priced at $3,415 per ounce. Despite this daily drop, the current price is significantly higher than it was a year ago, standing at $1,061 more than the $2,330 per ounce recorded on the same date in 2024.

Over the past month, gold prices have seen a more substantial decrease, falling by 6.07% from $3,185 per ounce. This monthly decline contrasts with the significant annual increase, highlighting the volatility in gold prices over different time frames. The year-over-year increase of 31.29% underscores gold's appeal as a hedge against inflation and economic uncertainty.

For investors seeking assets less affected by inflation, gold remains a wise choice. Historically, gold has appreciated over time, making it a reliable component of a diversified portfolio. Many investors opt for a gold IRA, which offers the convenience of not having to store physical gold, thereby avoiding associated costs. Regardless of the method of purchase, gold can serve as a steady part of a portfolio during market volatility.

However, gold is not a guaranteed solution in every financial environment. In a strong economy, stocks can deliver better returns both in the short and long term. From 1971 to 2024, traditional stocks averaged 10.7% annual returns, while gold averaged 7.9%. Despite this, gold is seen as a reliable, risk-averse asset during economic uncertainty, often viewed more as a store of value rather than a typical investment like stocks or bonds.

The spot price of gold, which is the current rate for buying or selling gold immediately in over-the-counter trades, helps investors track gold demand and market trends. A higher spot price indicates stronger demand. Unlike futures, the spot price is for immediate settlement. Many factors can cause the spot price to fluctuate, and investors should be prepared for this volatility.

Investors have various options for investing in gold, including physical bars, coins, and jewelry. However, most gold trading occurs through exchange-traded funds (ETFs). James Taska, a fee-based financial advisor, notes that owning gold as an ETF makes it easier to rebalance a client’s allocation and that the spread when attempting to buy/sell gold can be quite variable and wide. Popular ways to invest in gold include gold bars and rounds, gold coins, gold jewelry, gold futures contracts, and gold funds.

Deciding whether now is the right time to invest in gold is subjective. However, gold can help diversify a portfolio and reduce market risk. Prices have reached record highs, up more than 25% since early 2025, driven by inflation and uncertainty. Many experts recommend adding gold for diversification. Silver, platinum, and palladium are also common portfolio additions, with gold typically being less volatile than silver, which can see major price swings within a day. Silver’s use in industry makes it more responsive to economic trends. Platinum and palladium behave similarly to silver, offering portfolio diversification but usually being more volatile than gold.

The U.S. economy has been unsettled for years, with persistent inflation making an impact. Gold can serve as an inflation hedge in your portfolio. With multiple ways to buy, gold is accessible to most investors. Whether through a gold IRA or a more active investment approach, gold can help achieve both short- and long-term goals. Many investors choose gold ETFs, which provide a managed, easily traded basket of assets. Gold is a popular choice for those seeking diversification and inflation protection, with many straightforward ways to invest. Gold coins are collectibles and may be valued higher per ounce than bars, appealing to some investors due to their collectible and historical value. U.S. minted coins can also help guard against counterfeit bars.