February saw a new record gold price, some big fluctuations

February saw a new record gold price, some big fluctuations, and maybe an idea of what to expect with the gold price this year.

At its peak gold hit $2953.05 on 20/02/2025 after opening at $2794.15 on 03/02/2025 a 5.68% increase, before falling back to close the month at $2834.55 a 1.44% increase for the month. This volatility has been generally caused by economic conditions as the global economy has been experiencing fluctuations, leading investors to seek safe-haven assets like gold.

Ongoing geopolitical tensions, such as the well documented war in Ukraine remaining intractable, and high alerts in the Middle East, couple Trump’s apparent determination to disrupt global trade as much as possible on top of this, and the geopolitical outlook makes it understandable that demand for gold is rising.

We will have reports out of the US this week and, depending on which way the FED interprets them, these could have a impact on the gold price. Rising inflation and interest rates have also played a role in driving up gold prices. Central banks continue to increase their gold reserves, providing strong support for gold prices.

March will be an interesting month for gold, with no doubt further volatility, as global issues impact investor decisions. Keep up to date with us here at Diverse Equity Investments and if you'd like further information, please do get in touch.

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