Gold is glittering again. After a couple of quiet years, it surged back into focus in 2025. So, what’s driving the rally, is it sustainable and why are we telling some investors to sell their gold ETFs?
In this blog, we break down what’s pushing gold prices up, whether now is a good time to buy, and how gold fits into a smart investment strategy.
What’s driving gold prices in 2025?
Gold is up more almost 30% year-to-date, reaching new highs in several currencies, including the Australian dollar.
Key factors behind the gold surge:
| Driver | Impact on gold price |
| Falling interest rates | Increases gold’s appeal compared to government bonds |
| Global uncertainty | Boosts demand for safe-haven assets |
| Central bank buying | Increases baseline demand for gold |
| Weaker US dollar | Makes gold cheaper for global investors |
Should you invest in gold right now?
Gold doesn’t pay income, but it offers inflation protection, portfolio stability, and diversification. We believe gold belongs in every investor’s portfolio and super fund.
At Stockspot, we recommend holding 14.8% of your portfolio in gold. It’s not about betting on gold, but using it to cushion your investments during market shocks.
How gold helps during market uncertainty
Gold typically performs well when:
- Share markets fall
- Interest rates drop
- Inflation rises
- Currency values fluctuate
That’s why Stockspot includes gold in every client portfolio and superannuation account, it reduces the overall volatility of your returns and helps balance out risk.
What could impact gold next?
Here’s what investors are watching in the months ahead:
| Event | Historical impact on gold |
| Rate cuts by central banks | Positive (more demand) leading to higher prices |
| Rising geopolitical tensions | Positive (safe-haven buying) leading to higher prices |
| Strengthening US dollar | Negative (prices may cool) |
Why is Stockspot rebalancing portfolios and selling gold?
You might be surprised to hear that we’re actually recommending some investors sell gold right now, while it’s at an all time high. That’s not because we’ve changed our view on gold, we still see it as a valuable long-term diversifier. But with the recent surge in gold prices, many portfolios have become overweight in gold relative to their target allocation. At Stockspot, we follow a disciplined rebalancing strategy: we sell assets that have grown too large and buy those that are underweight. This helps keep your portfolio aligned with your risk profile and ensures you’re not overly exposed to any single asset. It’s a way of “selling high and buying low” without needing to time the market.
Gold is more than just a trend or a hype, it’s a timeless asset that plays a critical role in risk management. While prices will always fluctuate, having gold in your portfolio helps protect against the unknown.
Rather than chasing market trends, especially in volatile markets, smart investors will avoid the market noise and stick with their investment strategy, despite market cycles with certain asset classes rallying.
Investors with Stockspot receive a portfolio tailored to their time horizon and risk tolerance, and while we rebalance and keep your investments on track, you can relax knowing we’re keeping your investments on target with their optimal allocation for you.
If you want to invest in gold and a portfolio of diversified assets, and let us keep your portfolio balanced, let us match you with your optimal portfolio.
Missing gold in your superannuation? Explore Stockspot Super and find a super product with a 14.8% allocation to gold – find out more here.
