Holding gold in a balanced portfolio can provide useful diversification benefits, and historically has maintained a low correlation with most major asset classes.
Gold is often more sought-after when conditions are increasingly uncertain, or more volatile elsewhere. Unprecedented events, like the COVID-19 pandemic, can drive investors to search for relative “safe havens” such as gold.
Gold could be useful as an inflation hedge when inflation comes as a “shock” due to external factors, when prices escalate faster than expected or when central bank measures are ineffective.
Gold gained 19% in Q1 2025 for its best quarterly performance since Q3 1986. The yellow metal ended the quarter at an all-time high closing price of US$3,124. Gold was the best-performing major asset class as equities retreated in the second half of the quarter while fixed income assets adjusted to uncertainties around the path of interest rates and inflation.
Discover insights into the key macro events and what we think you should be keeping your eyes on in the near term.
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What’s driving the gold price? … and other important questions
The gold price has made a series of new all-time highs over the past year, driven partly by demand from investors. Find out more about what’s been driving the gold price, as well as answers to some of the other questions that many investors have when considering adding gold to their portfolios.
