While other asset classes like shares and bonds have seen some dramatic fluctuations in value this year, it has been the gold price that has shone the brightest as an investment.
The precious metal has spent most of 2025 hitting new all-time record highs.
February saw gold hit US$2,800 for the first time ever, soon to be followed by US$2,900.
The psychologically important US$3,000 level was first hit in early March. Then gold climbed past US$3,100, US$3,200, US$3,300, and US$3,400 in April to finally hit its current all-time high of US$3,500 an ounce on the 22nd of that month.
We saw this play out in one of the ASX's most prominent gold exchange-traded funds (ETFs). The Global X Physical Gold Structured ETF (ASX: GOLD) hit a new record high of $49.95 per unit on 22 April.
Since then, the yellow metal has cooled off a little. It is currently asking US$3,344 an ounce (or $5,164.50 in our local currency), leaving its year-to-date gain at just over 28%. Over the past 12 months, gold has vaulted nearly 43% higher. GOLD units are presently going for $47.42 each.
Why has the yellow metal been smashing record highs in 2025?
So it's been a great time to hold gold in one's portfolio in recent months. It's not too hard to see why gold has been in demand. The precious metal usually attracts attention and capital during times of global geopolitical and economic uncertainty. And we've had spades of both this year alone. On the former, wars in the Middle East and in Eastern Europe have continued to rage, with no end to either seemingly in sight.
On the economic front, investors have had to navigate the arguable chaos stemming from the Trump Administration's haphazard trade policies. In response, traditional American-based safe-haven assets like US Treasuries and the American dollar have seen a loss of confidence. As such, gold has probably been soaking up a lot of capital that has been fleeing these assets.
But many investors might be wondering where gold is headed next. Could US$3,600, US$3,700, or even US$4,000 an ounce be next?
Citi sets gold price target
Well, one ASX broker thinks gold's recent run is all out of steam, at least for now. According to reporting in the Australian Financial Review (AFR) this week, Citigroup has set its price target for gold at US$3,500 for the next few months.
Citi expects gold to "consolidate" between US$3,100 and US$3,500 an ounce going forward, "as the world digests US tariff policy changes, as geopolitical risks remain high, and as US budget and growth concerns remain elevated".
Citi did have a US$3,500 target for gold in place at the start of 2025, but subsequently lowered this target to US$3,150 an ounce following the de-escalation of trade tensions between the United States and China. However, the risks noted above and an increase in trade tensions between the US and Europe over recent weeks have sparked this reversal.
If gold does hit US$3,500 again, it would represent a gain of around 4.7% from where it currently sits. Let's see what happens next.
