Gold Soars as Investors Flee Uncertainty

Gold reached $3,404 per ounce as of 9:25 a.m. Eastern Time on August 28, 2025, marking a $21 increase from the previous day and an $883 rise compared to the same time last year [3]. This price reflects a broader trend of increasing demand for the precious metal amid global economic uncertainty and inflationary pressures. Over the past year, gold has appreciated by nearly 35%, with its value rising from $2,521 per ounce to $3,404. Shorter-term price movements also show a consistent upward trajectory, with a 0.62% increase from the previous day and a 2.79% rise over the past month.

The surge in gold prices has been driven by several factors, including heightened geopolitical tensions and a global trade war, which have reignited inflation fears. Gold, historically viewed as a hedge against inflation, has maintained its appeal as a safe-haven asset during periods of economic instability. Analysts from institutions like Goldman Sachs and J.P. Morgan have highlighted gold’s role in enhancing portfolio resilience, particularly during times of market volatility [2]. These insights align with the current price movements, as gold’s value has not only held firm but also appreciated significantly against the backdrop of a weakening U.S. dollar and rising global debt levels.

In terms of investment vehicles, gold exchange-traded funds (ETFs) have become increasingly popular among investors seeking exposure to the metal without the logistical challenges of owning physical gold. The SPDR Gold MiniShares (GLDM), for instance, has net assets of $14.9 billion and offers a low expense ratio of 0.10%, making it a cost-effective option for those looking to diversify their portfolios [1]. Similarly, the iShares Gold Trust Micro (IAUM) stands out for its minimal expense ratio of 0.09%, providing investors with a low-cost alternative for indirect gold ownership. These ETFs, along with others like the VanEck Junior Gold Miners ETF (GDXJ) and the VanEck Merk Gold ETF (OUNZ), offer a range of options for investors to gain exposure to the gold market.

The current price of gold has also prompted renewed interest in physical gold investments, particularly among conservative investors and those approaching retirement. According to financial experts, allocating between 10% and 15% of a portfolio to gold can provide a balanced approach to managing risk and enhancing long-term returns [2]. Some studies suggest that even higher allocations, such as 13% or 17%, may be optimal for certain investors, especially those seeking to mitigate the risks associated with a stock-heavy portfolio or economic downturns. The appeal of physical gold is further reinforced by its role as a tangible asset, offering investors a sense of security that is often lacking in paper-based investments.

Despite the rising price of gold, the market remains accessible through various investment avenues, including gold IRAs and direct purchases of gold bars and coins. Gold IRAs, in particular, offer tax advantages and a means to hedge against inflation, making them a popular choice for retirement-focused investors. Meanwhile, physical gold bars and coins continue to attract investors who value the tangible nature of the asset, though they require secure storage and come with additional costs. As gold continues to outperform traditional investment options in times of economic uncertainty, its role as a store of value and a diversification tool is likely to remain prominent in the investment landscape.

Source: [1] 5 Best Gold ETFs to Buy in 2025 | Investing - US News Money (https://money.usnews.com/investing/articles/best-gold-etfs-to-hedge-volatility) [2] How Much Gold Should I Own?Experts Say 10% (https://lendedu.com/blog/how-much-gold-should-you-own/) [3] Current price of gold: August 28, 2025 (https://fortune.com/article/current-price-of-gold-08-28-2025/)