Gold Prices Surge 30.41% Year Over Year to $3,348 Per Ounce

Gold prices have shown significant movement in recent times. As of 9:25 a.m. Eastern Time on July 1, 2025, gold was trading at $3,348 per ounce, marking a $64 increase from the same time yesterday and a $1,018 rise from a year ago. This upward trend is evident when comparing the current price to historical data. One month ago, gold was priced at $3,382 per ounce, reflecting a 1.02% increase from today's price. However, the price of gold one year ago was $2,330 per ounce, indicating a 30.41% decrease from the current price.

For investors seeking an asset less affected by inflation, gold may be a prudent choice. Historically, gold has been an asset that appreciates over time. 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 stable component of a portfolio during market volatility.

However, gold is not a guaranteed solution in every financial environment. In a robust 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 remains a reliable, risk-averse asset during economic uncertainty. This is why some investors view it more as a store of value rather than a typical investment like stocks or bonds.

The spot price of gold is the current rate for buying or selling gold immediately in over-the-counter trades. This helps investors track gold demand and market trends. A higher spot price indicates stronger demand. Unlike futures, the spot price is for immediate settlement. When the price for future delivery is above the spot price, it’s called contango, which is common for commodities with storage costs. If the futures price is lower, it’s called backwardation. Many factors can cause the spot price to fluctuate, and investors should be prepared for this volatility.

The price spread in gold trading is the gap between the buying and selling price of an asset. In gold trading, the ask price is the cost to buy, and the bid price is what you’d get for selling. The bid is always less than the ask. A smaller spread means a more liquid market. Tight spreads typically indicate higher gold demand.

Investing in gold can take various forms. While buying physical bars, coins, or jewelry is an option, most gold trading happens via 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 if now is the right time to invest in gold is subjective. However, gold can help diversify your portfolio and reduce market risk. Gold remains a stable asset amid today’s market volatility. 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. Gold is typically 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. These rare metals can diversify a portfolio but are usually 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.