Gold Surges 35.3% Year-On-Year Amid Economic Uncertainty

As of July 31, 2025, the price of gold stood at $3,309 per ounce as of 9:25 a.m. Eastern Time, reflecting a $2 drop from the previous day at the same hour but marking an increase of $864, or 35.3%, compared to the price one year ago [1]. This upward trajectory aligns with broader trends of rising gold prices since early 2025, driven largely by inflation and global economic uncertainty [1].

The performance of gold has shown variability over shorter timeframes. For example, the price of gold on July 30 was $3,311, representing a 0.06% increase. However, over the past month, gold was priced at $3,284, showing a modest decline of 0.76%. Meanwhile, in the past year, it fell by 26.13% from its price of $2,445 [1].

Gold is frequently considered a safe-haven asset, particularly during times of economic uncertainty. While it may not match the average annual return of stocks—10.7% from 1971 to 2024—gold has historically averaged 7.9% annually [1]. Investors often view it more as a store of value than as a high-growth investment. This perception has contributed to its appeal amid recent market volatility.

The spot price of gold—the current price for immediate purchase or sale—serves as a real-time indicator of demand and market sentiment. When the price for future delivery exceeds the spot price, it is referred to as contango, a common phenomenon for commodities with storage costs. Conversely, backwardation occurs when the spot price is higher than the futures price [1].

Gold trading involves understanding the price spread—the difference between the buying (ask) and selling (bid) prices. A narrow spread typically indicates a more liquid market and increased demand for the metal [1].

Investors can gain exposure to gold through various means, including physical gold bars and coins, gold ETFs, futures contracts, and gold funds. According to James Taska, a fee-based financial advisor, ETFs offer greater flexibility for rebalancing and are generally more convenient than physical gold [1].

Gold’s current price surge has led some experts to recommend its inclusion in investment portfolios for diversification purposes. While timing the market is subjective, many believe that gold’s role as a hedge against inflation and market swings makes it a strategic asset, particularly in times of economic uncertainty [1].

Other precious metals, including silver, platinum, and palladium, are also popular investments. As of the same time on July 31, silver was trading at $37 per ounce, platinum at $1,302, and palladium at $1,218 [1]. While these metals offer diversification, they tend to be more volatile than gold, especially silver due to its widespread industrial applications [1].

Despite the growing interest in gold, investors should remain cautious due to its price volatility and the potential for wide bid-ask spreads. The accessibility of gold through various investment vehicles, including gold IRAs and ETFs, makes it an attractive option for both novice and experienced investors [1].

Source: [1]Current price of gold as of July 31, 2025 (https://fortune.com/article/current-price-of-gold-07-31-2025/)