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Should I Buy Gold Now? 2025 Ultimate Investment Strategy

Summary:

Gold has broken below $3,320 in 2025! Should I buy gold now? Analyze central bank buying, rate cuts, and geopolitical risks with expert timing tips.

In June 2025, international gold prices experienced a dramatic surge. As geopolitical tensions escalated in the Middle East, the London spot gold price soared to USD 3,444 per ounce, hitting a four-month high.

However, when Trump suddenly announced a comprehensive ceasefire agreement between Israel and Iran, gold prices plummeted 1.45% in a single day, falling below the USD 3,320 level.

This kind of sharp price swing has left countless investors unsettled, raising the pressing question: is now a good time to buy gold?

Gold price trend chart - ultima markets

Gold at a Turning Point: Opportunity or Pitfall?

As of now, gold is struggling around the key support level of USD 3,320.

Technical indicators suggest this level has become a battleground between bulls and bears. If the daily close holds above it, a rebound could be triggered; if broken, prices may test the strong support zone of USD 3,260–3,280.

Behind this volatility lies a tug-of-war between multiple forces: expectations of a Federal Reserve policy pivot, continued gold buying by global central banks, and the rise and fall of geopolitical risk all push gold prices in different directions.

In such a complex market environment, simply asking “Is it time to buy?” is no longer sufficient.

Investors must delve deeper: where is the current gold price situated? What are the key factors influencing future movements? What strategies apply to different investment objectives?

More importantly, how can one capture gold’s unique value as a hedge and inflation buffer while controlling risk? These are the core questions this article aims to address.

Gold hedging asset allocation - ultima markets

Five Key Factors: Is Now the Right Time to Buy Gold?

Geopolitical Risk

Middle East volatility pushed gold’s price fluctuation rate up 35%. Historical data shows that during similar geopolitical tensions, gold has averaged annual gains of 12%–15%. Recently, both institutional and retail investors have shown a surge in demand for hedging. One platform reported a 200% year-on-year increase in gold CFD trading volume.

Central Bank Gold Buying and Monetary Realignment

In 2025, global central banks maintained gold purchases above 1,000 tons. China increased its gold reserves for five consecutive months. This accumulation reflects a broader move to diversify away from fiat currencies, providing long-term support for higher gold price levels.

Fed Rate Cuts and Real Yield Compression

Expectations for rate cuts by the Federal Reserve continue to rise, lowering the opportunity cost of holding gold. According to model estimates, if the 10-year U.S. real yield falls from 2% to 1.5%, the theoretical allocation value of gold could increase by 20%.

Tight Physical Supply and Longer Delivery Time

  • Supply: London vault inventories are critically low, extending gold delivery wait times to 4–8 weeks.
  • Demand: Global gold ETF holdings reached 3,680 tons, and monthly participation in gold accumulation plans has risen by 35%.

Technical Battle at Key Levels

USD 3,320 is the line of demarcation. Holding above it could pave the way to USD 3,400; a breakdown may lead to USD 3,260–3,280. Technical indicators show the RSI has entered the oversold zone, suggesting rebound momentum exists.

Comparison of gold investment channels - ultima markets

Practical Strategies for Three Types of Investors

Short-Term Traders: High Leverage to Capture Volatility

  • Entry Logic: Use USD 3,320 as the base level, adopt a “tiered position building + trailing take-profit” strategy. Increase positions on a breakout above USD 3,350; stop loss below USD 3,300.
  • Recommended Tool: Gold futures CFDs (spreads as low as USD 0.1), support for 1–100x leverage, suitable for T+0 trading. Click to try the professional trading platform.
  • Risk Reminder: Position size should be ≤10%. Use the platform’s “negative balance protection” to manage risk.

Medium-to-Long-Term Allocators: Dollar-Cost Averaging + Trend Following

  • Entry Strategy: Activate the “smart investment plan” — automatically invest monthly at USD 3,300, add on dips to USD 3,200 to average cost while tracking the trend.
  • Tool Selection: Gold ETF-linked products (index-tracking with <0.3% premium) or bank accumulation gold. Use the platform’s price comparison tool to check real-time costs.
  • Position Management: Allocate 10%–15% of total assets, dynamically adjust against other asset classes.

Hedgers: Physical Gold + Derivatives Hedging

  • Entry Logic: Purchase 9999 fine gold bars (certified by central bank refineries) and simultaneously buy call options to hedge against price fluctuations.
  • Key Reminder: Hedging allocation should be tailored to individual risk tolerance.
Gold price support illustration - ultima markets

Comparison of Gold Investment Channels

Channel TypeTraditional BankExchangeInformal PlatformProfessional Trading Platform
Transaction CostPremium of 8–15 TWD/g0.02% handling feeHigh hidden feesLow spreads (no extra charges)
Product VarietyAccumulation gold onlyFutures / SpotHigh-risk leveraged toolsFutures CFDs / Options / ETF-linked
SecurityCentral bank certifiedStrictly regulatedLicense risksDual regulation, segregated funds

FAQ

Q: How can beginners safely start investing in gold?

A: It is recommended to choose a properly regulated platform, begin with a demo account to gain experience, and start with small positions. Increase position size only after becoming familiar with the trading environment.

Q: Will gold prices fall below USD 3,000?

A: Fundamentally, strong support comes from global central bank gold purchases, de-dollarization trends, and tight physical supply. A fall below USD 3,000 would be considered an extreme scenario. If the Federal Reserve unexpectedly delays rate cuts, a short-term test of USD 3,100 is possible. However, medium- to long-term trends still point toward a gradual upward movement.

Q: Should I buy gold now? How to determine the right entry timing?

A: Watch for these three signals:

  • Price support level: USD 3,320/oz is a key support zone (tested multiple times in 2025). If prices hold at this level, it may indicate a short-term entry point.
  • Policy signals: The Fed is expected to cut rates twice this year. If a dovish signal is released or cuts are implemented, it could boost gold prices.
  • Market sentiment: Global gold ETF holdings have reached 3,680 tonnes (a three-year high). Ongoing institutional inflows suggest a bullish long-term outlook, supporting a strategy of phased buying on pullbacks.

Conclusion

Whether you’re a beginner or a seasoned investor, the key to gold investing lies in aligning your personal risk tolerance with sound market logic.

With the battle for the USD 3,320 support level still underway, the coexistence of short-term volatility and long-term trends calls for strategic planning. Leverage the tools of a professional platform to navigate uncertainty and unlock the hedging value of gold.

Start Trading

Disclaimer: This content is provided for informational purposes only and does not constitute, and should not be construed as, financial, investment, or other professional advice. No statement or opinion contained here in should be considered a recommendation by Ultima Markets or the author regarding any specific investment product, strategy, or transaction. Readers are advised not to rely solely on this material when making investment decisions and should seek independent advice where appropriate.

1.Gold at a Turning Point: Opportunity or Pitfall?
2.Five Key Factors: Is Now the Right Time to Buy Gold?
3.Practical Strategies for Three Types of Investors
4.Comparison of Gold Investment Channels
5.FAQ
6.Conclusion