New york: The World Gold Council (WGC) has released its Gold Mid-Year Outlook 2025 report, showcasing gold's impressive 26% rise in the first half of 2025, a period marked by the US dollar's weakest start to a year since 1973. This shift has significantly redefined global investment flows.
According to Emirates News Agency, gold has maintained its record-setting trajectory, achieving a 26% increase in US dollar terms during the first half of the year and securing double-digit returns across various currencies. The surge in gold prices is attributed to a combination of factors, including a weaker US dollar, stable interest rates, and a highly uncertain geoeconomic environment, which have collectively bolstered investment demand for the precious metal.
Throughout the first half of 2025, gold emerged as one of the top-performing major asset classes, achieving a 26% rise and marking 26 new all-time highs (ATHs) during this period. This follows its performance in 2024, where it broke through 40 new ATHs. The WGC report notes that gold's remarkable surge outpaced equities, bonds, and other major asset classes, driven by factors such as the weakened US dollar, stable interest rates, and heightened geoeconomic uncertainty, all of which contributed to strong investment demand.
The WGC, using its Gold Valuation Framework, has outlined three potential scenarios for the second half of 2025. In the base case scenario, gold could see a modest upside of 0-5% as economic normalization progresses. The bull case scenario suggests a potential 10-15% increase if economic conditions deteriorate further. Conversely, the bear case scenario anticipates a possible 12-17% pullback if trade risks ease significantly.