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As global uncertainty continues to mount, investors have been piling into gold, which many consider the ultimate safe-haven asset. That, in turn, led the price of gold to surge past $3,600 per ounce on Monday morning — a new record high and a stunning increase of over $1,000 per ounce compared to just one year ago.
That’s hardly the first time we’ve seen the price of gold climb in 2025, though. Despite some temporary lulls and price dips, the precious metal has been a star performer for much of this year, climbing by around 38% since January 1, when the price was sitting at about $2,624 per ounce.
Still, many potential investors are watching from the sidelines and wondering if they’ve missed the opportunity to capitalize on gold’s price growth. After all, gold is trading at levels that would have seemed impossible just a few years ago. So does today’s record-high gold price mean it’s too late to buy in, or should investors still consider a gold purchase now? That’s what we’ll examine below.
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Is it too late to buy gold as prices surge?
The short answer is no, it’s probably not too late for investors to capitalize on gold’s price growth. While gold’s meteoric rise might suggest that the window of opportunity is closing, there are actually multiple factors that indicate this bull run could still have significant room to grow. Here’s why a gold investment could still make sense now:
Analysts think the price could climb higher
Historically, upticks in gold prices are often followed by temporary dips as investors take profits or sell off gold assets to round out their portfolios. Right now, though, analysts are doubling down on gold, with Goldman Sachs Research predicting in a note released last week that gold will rise to $3,700 per ounce by the end of 2025.
And, the bank outlined a baseline forecast for a surge to $4,000 an ounce by mid-2026, with even more aggressive scenarios possible. If just 1% of the privately owned U.S. Treasury market were to flow into gold, Goldman Sachs’ analysts expect that the gold price would rise to nearly $5,000 per troy ounce.
Goldman isn’t alone in its bullish outlook, either. J.P. Morgan expects gold prices to average $3,675 per ounce by the fourth quarter of 2025 and climb toward $4,000 by mid-2026. Meanwhile, UBS upgraded its gold forecast to predict a price of between $3,700 and $4,000 an ounce by mid-2026, citing escalating uncertainty around tariffs and geopolitical risks.
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The economic landscape makes gold a smart bet
Recent economic data also paints a picture that historically favors gold. Employers added just 22,000 jobs in August, according to the jobs data released last week, falling well short of the 80,000 economists had forecast and signaling significant weakness in the labor market. Perhaps even more concerning, though, is that revised data shows employers actually shed 13,000 jobs in June rather than adding the 14,000 that had been reported, marking the first decline since late 2020.
The Federal Reserve finds itself in an increasingly difficult position. Inflation has held steady at 2.7% annually as of the latest report, while the job market shows clear signs of distress. Fed Chair Jerome Powell has signaled that the central bank is open to reducing rates at its September meeting, citing risks to the labor market. Lower interest rates traditionally benefit gold, since the precious metal doesn’t offer a yield and becomes more attractive when cash and bonds pay less.
This economic fragility, combined with ongoing concerns about government debt levels and potential policy changes, creates an environment where gold’s role as a store of value becomes increasingly valuable.
Diversification and portfolio protection still matter
Beyond market predictions and economic data, gold offers intrinsic value in a diversified investment strategy. Unlike paper assets, gold is a tangible resource that historically retains purchasing power over time. That means investors who are concerned about market swings, currency fluctuations or geopolitical instability may want to allocate a portion of their portfolio to gold, which can provide insurance against downside risks.
Gold also typically moves independently of traditional equity markets, making it a strategic addition for those looking to balance risk. Even in a high-price environment, gradual accumulation through gold exchange-traded funds (ETFs), gold stocks or physical gold bars or coins allows investors to manage exposure while still benefiting from potential future gains.
The bottom line
While buying any asset at record highs feels counterintuitive, gold’s current environment suggests the rally has fundamental support that could drive prices considerably higher. The combination of analyst forecasts pointing to $4,000+ targets, a weakening economy that favors safe havens and the other portfolio-related benefits that gold offers could make it a smart addition to your portfolio right now.
That said, gold can be volatile and prone to sharp pullbacks. For investors considering an allocation, the key is proper position sizing. Most experts recommend keeping gold exposure to a maximum of 5% to 10% of your portfolio’s value. The goal isn’t necessarily to time the perfect entry point, but to participate in what appears to be a structural shift toward the precious metal as a critical portfolio diversifier in an uncertain landscape.