At $3,200, gold’s rally is far from over. In fact, thanks to the ongoing trade war and probability of a recession, gold could test $4,000, according to analysts at JPMorgan. “The bank now expects gold prices to reach an average of $3,675/oz by 4Q25, on the way towards above $4,000/oz by 2Q26, with risks skewed towards an earlier overshoot of these forecasts if demand surpasses its expectations,” as reported by Reuters.
Goldman Sachs also believes gold could rally to $3,700 by the end of 2025, and to $4,000 by the middle of 2026. Even UBS analysts say gold could rally to $3,500 by December. All thanks to stronger-than-expected central bank demand for gold, which isn’t expected to slow any time soon. Instead, central banks are only accelerating their demand. China, for example, just expanded its gold reserves for the sixth consecutive month, adding 70,000 troy ounces in April.
“In China, there have been signs investors are piling into gold, with volumes on the Shanghai Futures Exchange surging to a record in recent weeks. The voracious onshore appetite has also seen the PBOC issuing fresh quotas for commercial banks to import bullion,” says Bloomberg.
As we noted in February, one of the best ways to invest in gold is with ETFs such as:
The VanEck Vectors Gold Miners ETF (SYM: GDX), which ran from $41.50 to a current price of $48.88. With an expense ratio of 0.51%, the ETF holds positions in Newmont Corp., Barrick Gold, Franco-Nevada, Agnico Eagle Mines, Gold Fields, and Wheaton Precious Metals.
The other ETF was the Sprott Junior Gold Miners ETF (SYM: SGDJ), which ran from $39 to $46.83 so far. With an expense ratio of 0.5%, the SGDJ ETF seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, the Solactive Junior Gold Miners Custom Factors Index. The Index aims to track the performance of small-cap gold companies whose stocks are listed on regulated exchanges.
Another hot gold ETF to consider is the iShares Gold Trust (SYM: IAU).
While the IAU ETF did run from about $56 to $62.34 so far, there’s still plenty of upside potential here – especially if gold can rally to $4,000.
With an expense ratio of 0.25%, the ETF offers inexpensive access to physical gold.
As noted by ETF.com, “IAU is an efficient way for investors to hold physical gold. The fund removes the complexities for retail investors of buying, transporting, storing and insuring physical gold. The underlying gold bars are held in vaults around the world, with an inventory list available on the Issuers website.”
