In mid-2025, gold prices staged a roller-coaster ride. Heightened Middle East tensions briefly pushed London spot gold up to USD 3,444 per ounce, the highest in four months.
Yet, after Trump announced a ceasefire deal between Israel and Iran, gold swiftly lost 1.45% in a day, dipping below USD 3,320.
Such swings leave many investors puzzled: should you buy gold now, or is it wiser to wait?
Gold at a Crossroads: Buying Opportunity or Hidden Risk?
Currently, gold is testing support near USD 3,320.
If this floor holds, technicals point to a rebound; if it fails, the market could slide to the USD 3,260–3,280 zone.
The tug-of-war is shaped by three forces: Fed policy expectations, strong central bank demand, and the ebb and flow of geopolitical uncertainty.
So instead of asking only “buy now or wait,” investors need to ask: where are prices positioned, what catalysts matter most, and which strategy fits their risk profile?
Five Market Drivers to Watch Before Buying Gold
Geopolitical Risk
Conflict-driven volatility pushed gold’s fluctuation index up 35%. Historically, during similar crises, gold has delivered 12%–15% annual gains. In 2025, gold CFD volumes doubled year-on-year, showing both retail and institutional hedging demand.
Central Bank Gold Buying and Monetary Realignment
Global central banks added over 1,000 tons of gold in 2025. China expanded reserves for five months in a row, underlining a global diversification push away from the U.S. dollar—long-term supportive for prices.
Fed Rate Cuts and Real Yield Compression
Market consensus leans toward Fed rate cuts this year. If real yields on the U.S. 10-year fall from 2% to 1.5%, allocation models suggest gold’s fair value could rise by roughly 20%.
Tight Physical Supply and Longer Delivery Time
- Supply: London vault inventories are critically low, extending gold delivery wait times to 4–8 weeks.
- Demand: Global gold ETF holdings reached 3,680 tons, and monthly participation in gold accumulation plans has risen by 35%.
Technical Battle at Key Levels
USD 3,320 is a pivot zone: a hold may open the way to USD 3,400, while a breakdown risks USD 3,260. RSI signals oversold, hinting at potential rebound momentum.
Practical Strategies for Three Types of Investors
Short-Term Traders: High Leverage to Capture Volatility
- Entry Logic: Use USD 3,320 as the base level, adopt a “tiered position building + trailing take-profit” strategy. Increase positions on a breakout above USD 3,350; stop loss below USD 3,300.
- Recommended Tool: Gold futures CFDs (spreads as low as USD 0.1), support for 1–100x leverage, suitable for T+0 trading. Click to try the professional trading platform.
- Risk Reminder: Position size should be ≤10%. Use the platform’s “negative balance protection” to manage risk.
Medium-to-Long-Term Allocators: Dollar-Cost Averaging + Trend Following
- Strategy: Dollar-cost averaging—set automatic monthly buys near USD 3,300, add more on dips to USD 3,200.
- Tools: ETFs, accumulation gold, or linked structured products.
- Allocation: 10%–15% of portfolio, balanced with equities and bonds.
Hedgers: Physical Gold + Derivatives Hedging
- Plan: Combine physical bullion (9999 bars) with derivatives like call options for risk management.
- Note: Tailor hedging ratios based on risk tolerance.
Comparison of Gold Investment Channels
| Channel Type | Traditional Bank | Exchange | Informal Platform | Professional Trading Platform |
| Transaction Cost | Premium of 8–15 TWD/g | 0.02% handling fee | High hidden fees | Low spreads (no extra charges) |
| Product Variety | Accumulation gold only | Futures / Spot | High-risk leveraged tools | Futures CFDs / Options / ETF-linked |
| Security | Central bank certified | Strictly regulated | License risks | Dual regulation, segregated funds |
FAQ
Q: How can beginners safely start investing in gold?
A: Begin with a regulated platform. Use a demo account to practice before committing capital.
Q: Will gold prices fall below USD 3,000?
A: Strong central bank demand and limited supply make that scenario unlikely. However, a delay in Fed cuts might trigger a test near USD 3,100. Over the medium term, the outlook remains constructive.
Q: Should I buy gold now? How to determine the right entry timing?
A: Watch for these three signals:
- Price support level: USD 3,320/oz is a key support zone (tested multiple times in 2025). If prices hold at this level, it may indicate a short-term entry point.
- Policy signals: The Fed is expected to cut rates twice this year. If a dovish signal is released or cuts are implemented, it could boost gold prices.
Market sentiment: Global gold ETF holdings have reached 3,680 tonnes (a three-year high). Ongoing institutional inflows suggest a bullish long-term outlook, supporting a strategy of phased buying on pullbacks.
Conclusion
Whether you act now or wait depends on your time horizon and risk appetite.
Short-term moves remain volatile, but long-term fundamentals—central bank demand, rate cuts, and supply constraints—support a bullish case.
By using a professional platform and strategic allocation, investors can harness gold’s dual role as both hedge and growth driver in 2025.