Is it good to store gold in 2025? What investors need to know before making a decision

Amidst the global market instability, many are beginning to seek risk protection through assets considered safe. Is it good to hold gold? has become a common question among investors. In 2024, gold prices soared to their highest levels since records began, drawing increased attention to this asset.

Why Gold Prices Are Rising: Recent Changes in the Global Market

Gold prices surged to $2,790 per ounce in October 2024, the highest since records began. Several factors have played a role in driving this change.

War and geopolitical tensions

International political conflicts have created market concerns, especially in Eastern Europe, Middle Eastern movements, and uncertainties from major elections. All these factors have led investors to allocate more funds into highly secure assets.

Central banks worldwide increasing gold holdings

Financial institutions in various countries have significantly increased their gold reserves. In the first three months of 2024, holdings increased by 290 tons, exceeding the standard average by 36%. Countries like China, India, and Turkey have led in accumulating gold to reduce reliance on foreign currencies.

US monetary policy and expectations of adjustments

Speculation that the Federal Reserve will lower interest rates has created a favorable environment for gold. As yields from holding cash decrease, gold, which does not pay interest, becomes a more attractive option.

Concerns over the large economy

Budget deficits, currency volatility, and persistent high inflation all indicate an increased demand for safe-haven assets.

What could drive gold prices higher in the future?

Fundamental outlook

The strengthening of institutional buying remains a key mechanism supporting prices. China increased holdings from about 1,900 tons to over 2,500 tons, reflecting expanded investment scope. Meanwhile, India aims to raise gold as part of its foreign reserves from 7% to 10% by 2025.

This shift reflects structural changes in the international financial system. Geopolitical risks and the potential for declining yields all support a positive outlook for gold.

Technical trend analysis

Gold prices have a critical support level at $2,447 per ounce (200-day moving average). The ability to stay above this point indicates that the bullish trend still has momentum.

For example, after approaching $2,800 per ounce, prices pulled back somewhat. However, RSI indicators show the market has released excessive buying strength, suggesting a potential for upward correction. The MACD indicator also supports this view, as it approaches the Zero Line, and increased trading volume during upward moves demonstrates trader confidence.

What do major financial institutions forecast for 2025?

Goldman Sachs is optimistic

This leading financial institution has raised its year-end target to $2,700 per ounce for 2024, citing strong demand from central banks and geopolitical uncertainties as primary drivers.

J.P. Morgan is realistic but cautious

Despite warnings about short-term interest rate risks, analysts believe that rate cuts and central bank purchases will help support prices in their reports.

FX Empire’s aggressive outlook

Analyst AG Thorson suggests that if tensions escalate or a recession occurs, gold could try to reach $3,000 per ounce in 2025.

UBS and Morgan Stanley offer balanced views

Morgan Stanley targets $2,800 per ounce for 2025, while UBS warns that recent price increases may require a pause for profit-taking.

Is it good to hold gold for maximum returns? Practical advice

Appropriate holding periods

For long-term investors (3-5 years), gold helps diversify risk, as it often moves inversely to stocks and risky assets. Short-term holdings (6 months-1 year) require clear entry and exit plans, as short-term volatility can be intense.

Optimal allocation

Most experts recommend allocating 5-10% of your portfolio to gold. For example, with a 1 million THB investment, adding 50,000-100,000 THB is advisable. However, it should not exceed 15-20% to maintain a balanced portfolio.

Good entry points

The level of $2,447 per ounce is a key support. Gradually buying as prices approach this level or even below $2,500 per ounce may present opportunities. A good approach is to divide your funds into multiple parts and buy gradually rather than investing all at once.

Risks to consider

Although gold hedges against risks, prices can still decline by 10-15% during volatility or even 20-25% in crises. For example, an investment of 100,000 THB could drop to 75,000-90,000 THB. Be prepared for such fluctuations in adverse short-term scenarios.

Conclusion: Is it good to hold gold? Ultimately

Is it good to hold gold? The answer is that there are many reasons supporting investors to consider it, but it must be done carefully. All factors indicate that gold still plays a real role in protecting value. Central bank accumulation, international tensions, and technical signals all suggest a continued positive trend.

To achieve good profits, you should:

• Assess your acceptable risk level
• Avoid investing funds needed for short-term use
• Allocate an appropriate portion (5-10% of your portfolio)
• Use a gradual buying strategy to reduce risk
• For long-term goals, gold should be part of a diversified investment strategy alongside other assets

Understanding yourself and the market is the foundation of smart investment decisions.