Gold Continues to Gain in Q2 2025, Consolidates at $3300
Gold Price Quarterly Update, June 30th, 2025
Gold finished the second quarter of 2025 at almost exactly $3,300 per ounce, a roughly 6% increase on the quarter.
While objectively still very robust, the rate of increase and price action this quarter represents somewhat of a consolidation compared to the past year and a half. Gold has spent most of the quarter bouncing between $3100 and $3450.
The overall macro and political environment continues to be quite bullish for gold as a fear trade. Though in recent months the extreme fear and uncertainty has receded slightly, weighing a bit on the gold price as of late.
A Brief Reprieve
The extreme fear and uncertainty from March-April of this year which propelled gold prices to stratospheric levels has cooled off a bit, though the overall backdrop of events and trends still remains in a state of relatively high flux, conducive to supporting a higher gold price.
The worst case scenarios feared by traders back in April now appear unlikely, as the Trump administration seems to be moderating a bit from the more extreme trade/tariff scenarios and geopolitical decoupling from historic allies. President Trump has also backed off a bit from the unprecedented amount of pressure he placed on Fed Chair Jerome Powell, which led people to doubt the independence of the Fed, which led to a decline in the dollar, which led to higher gold prices.
All that being said, as mentioned earlier, the macro backdrop remains one of high economic uncertainties and risks, among others. The Dollar index remains on a historic downward trend, declining by 10% so far in the first half of this year. All which act as robust support for the gold price.
Increased Gold Buying from China
China has been on a gold buying spree again, quietly ramping up its reserves through 2024 and into 2025. After a brief pause, the People’s Bank of China resumed purchases in late 2024 and has been adding to its stash for seven straight months as of May 2025—bringing total holdings to nearly 2,296 tonnes. This isn’t just about the central bank either: regulators recently told Chinese insurers to start allocating at least 1% of their assets—about ¥320 billion—into physical gold, while import rules were loosened to make bringing gold into the country easier. The big picture? China’s doubling down on gold to diversify away from the US dollar, prop up the yuan, and hedge against global volatility—all while quietly reinforcing its financial independence.
TINA for Gold?
It really feels like a TINA moment for gold—There Is No Alternative. With everything going on globally—rate cuts on the horizon, sticky inflation, ballooning government debt, geopolitical tension—most traditional investments just don’t feel that safe or rewarding anymore. Bonds look shaky with real yields barely outpacing inflation, stocks feel frothy and too dependent on AI hype, and real estate is stuck with high rates and low affordability. Personally, I’m finding it harder and harder to justify anything other than gold right now. It’s liquid, globally trusted, and doesn’t rely on any one government or central bank doing the right thing. In this environment, gold isn’t just a hedge—it’s starting to look like the most rational core holding.