The price of gold is at historic highs as traditionally, the precious metal in all its forms strengthens in price due to geopolitical developments. However, the recent gold rally showed an unexpected rate of increase, considering the reduction in inflation, the strengthening of the dollar, and the decrease in real interest rates in 2024.

According to data provided by the financial study of Piraeus Bank – see it here – and specifically the relevant study department of the bank, on March 17, gold recorded a historic price of $3,001 per ounce.
The above data leads to the conclusion that historical correlations of gold should be disconnected and a reassessment of its characteristics should take place.
In the last decade, the price of gold has more than doubled, from $1,184 per ounce in 2014 to $2,625 per ounce by the end of 2024. In 2023, the increase was 13%, and in 2024, it was 27%.

According to estimates by international analysts, the price of gold is expected to reach as high as $3,200 per ounce in 2025, as it continues to be a preferred choice for investors during times of turmoil.

For the same reasons, the gold pound followed the same upward trend, with its selling price reaching €724.86, marking an increase of 35.6% compared to the previous year. According to the study, the main source of gold supply is mining.

The largest gold-producing countries are China, Australia, Russia, and the United States.

A smaller percentage comes from the recycling of jewelry, electronic devices, and other products containing gold. The demand for gold in jewelry manufacturing represents nearly 40% of global demand. Together with investments, they account for about 65% of global demand for gold.

Gold demand has expanded significantly over the last 15 years, with a cumulative increase of 15%, bringing the available tons to 4,974.5.
The demand from Central Banks has registered the largest increase in total gold demand, reaching 21% in 2024.
In contrast, other categories showed a downward trend during the same period, with investments suffering the largest decline, even though there was significant investment interest in 2024.

It is worth noting that the commercial uncertainty index is at historically high levels, maintaining a strongly positive correlation with the price of gold.

Also, the use of gold is expanding into other sectors, such as industrial and medical applications. Since the early 2000s, gold has been widely used as an investment tool, particularly with the launch of gold ETFs trading.
Gold possesses unique characteristics compared to other financial assets (e.g., it does not generate income) but tends to outperform in times of economic uncertainty and geopolitical tensions as a means of value preservation and securing economic stability.

As the current macroeconomic environment becomes increasingly uncertain and unpredictable, and until the policies of Donald Trump and their effects on the global economy become clearer, the need for safer investment options has led to new highs in the price of gold.