Gold's Performance: Gold has surged over 45% in the past 12 months

Gold's Performance: Gold has surged over 45% in the past 12 months, reaching new highs in 2025 with a 7% increase.

With talk of a correction making the rounds, lets revisit the US elections.

On 1st October gold traded at $2648.85 as the election results threw up more uncertainty the price increased hitting a high in the days before of $2783.95 a 5% increase.

After the election and as the uncertainty was removed gold fell back to $2548.45 on the 14th November, a near 8.5% decrease.

This can be explained by money managers using gold as hedge. Imagine using gold as a waiting room whilst waiting out uncertainty. As more money flows into gold the value goes up, pushing up the value of the investments, then as uncertainty is removed the money quickly flows out again to other assets, causing a correction in the gold price.

The record high of October last year has now been well and truly left in the shade, with gold hitting over $2950 last week. However some analysts are still looking very bullish on gold (a term used to describe a positive outlook). The combination of central bank buying, speculative investors, and various macroeconomic factors suggests that the rally in gold prices is likely to continue. The forecasted potential for gold to reach $3300 by the end of the year, along with the continued bullish sentiment, indicates a strong outlook for gold as a valuable asset in uncertain times.