Gold has experienced a remarkable year, with prices soaring approximately 27% year-to-date, according to eToro Market Analyst Zavier Wong. The precious metal reached a peak of $3,438 per ounce in late July, briefly hitting an intraday high of $3,500 in April. This surge in gold prices has significantly outpaced the S&P 500, which has seen a 7% increase over the same period.
Global demand for gold rose by 3% year-on-year in the second quarter of 2025, reaching 1,249 tonnes, with a record value of $1,325 billion. In Singapore, demand mirrored this trend, with 2.2 tonnes of gold bars and coins purchased locally, marking a 37% increase from the previous year. Wong noted that whilst demand has settled into a more sustainable rhythm, it remains strong.
Family offices are increasingly opting to store gold in Singapore, as global risks prompt ultra-wealthy investors to favour physical assets closer to home. This shift reflects a broader trend of moving away from traditional Swiss vaults to the safety of Singapore’s freeports.
Economic indicators, such as softer US job data and a rise in the unemployment rate to 4.2%, have heightened expectations of a September rate cut by the Federal Reserve. Wong explained that if rates are cut, the opportunity cost of holding non-yielding assets like gold decreases, potentially boosting gold prices further.
However, jewellery demand has not kept pace, with global volumes down 14% from last year. In Singapore, jewellery demand fell by 8%, as rising prices shifted gold’s role from accessory to asset.
Looking ahead, gold is expected to maintain its status as a strategic portfolio asset, with financial conditions pointing towards lower rates and continued central bank purchases, particularly in Asia and emerging markets. Despite potential risks, such as a rebound in US data or a delayed Fed pivot, Wong believes that momentum and safe-haven interest will continue to support gold’s appeal.
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