The gold rally can’t be stopped. How to play it now.
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Subscribe to enjoy similar stories. Gold’s stellar run is too shiny to ignore—and its rally could continue through 2025. The precious metal is certainly having a moment.
On Feb. 24, President Donald Trump said he was worried that someone might have stolen gold from Fort Knox, the U.S. depository in Kentucky.
Worries that he might place tariffs on gold have created a flurry of activity as bars in London, where the Bank of England is home to the world’s second-biggest stockpile, have been transported to New York, where the Federal Reserve has the largest reserves. There’s even speculation that the U.S. could revalue its gold holdings to give the Treasury $750 billion more to play with.
All told, gold futures have reached $2925.10 an ounce, returning 42% over the past 12 months, more than double the S&P 500 index’s 19% return, including reinvested dividends. That’s not bad for a commodity that has little practical use and doesn’t produce earnings or pay interest to those that hold it. What’s more, the reasons offered for gold’s rally are often contradictory and don’t seem to hold up when investigated.
It’s considered a defensive asset, but has been rising along with the stock market and as the economy chugs along. The precious metal, which is priced in dollars, should move in the opposite direction of the greenback, but it has bucked that rule as well. Gold is often thought of as an inflation hedge, but its big gain has coincided with a deceleration of price increases.
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