Investors Shift to Real Assets
If you’ve been following the gold market, you know that something significant is unfolding. Prices are hovering just below record highs. And underlying economic signals suggest this isn’t a fluke or a flash in the pan.
A confluence of factors is at play. Rising unemployment claims, persistent questions about inflation, and renewed geopolitical friction, are pushing more investors toward gold. It’s not just about short-term gains; it’s about protecting purchasing power and positioning portfolios for what’s next. In short, this is the kind of setup that historically makes a strong case for owning physical gold.
Gold’s Momentum Is Building
As of early June 2025, gold prices are hovering around $3,400 an ounce, continuing a strong upward trend that began in 2023.
This isn’t just a short-term surge. According to Metals Focus’ Gold Focus 2025 report, gold is expected to reach a record annual average of $3,210 this year. Even higher prices are predicted in the second half of 2025. The report notes that the $3,000 price level, once a psychological barrier, is now acting as a floor. A major leap from the $2,000 level seen in early 2024. This suggests the gold market is showing long-term strength.1
Philip Newman is Managing Director at Metals Focus. He stated, “We have all the ingredients needed for a structural bull market.” Newman notes that many investors are only now entering the gold market. And that central banks are continuing to buy more than 1,000 tons of gold annually for a fourth consecutive year. With investor demand accelerating, support for high prices appears durable.3
What’s Driving Demand?
Rising weekly jobless claims are one piece of the puzzle. The U.S. Department of Labor reported an increase of new claims to a seasonally adjusted 247,000 for the week ending May 31. That’s higher than the 236,000 economists had forecasted. Continuing jobless claims remain elevated at 1.904 million, a sign of weakening momentum in the job market.4
Rising unemployment is raising fresh concerns about a potential recession. In response, investors are once again turning to gold as a safe haven in uncertain times.
The Dollar’s Decline Lifts Prices
Another significant tailwind for gold is the weakening U.S. dollar. Confidence in the dollar’s long-term stability is being tested. Trade tensions, rising tariffs, and record levels of government debt are causing some investors to diversify away from U.S. assets and into physical gold.
Price Predictions Point Higher
Goldman Sachs is projecting a potential high of $4,500 per ounce in a high-risk scenario. Their base case forecast is $3,700 per ounce. But they note that if a US recession occurs, gold could reach $3,880 per ounce. This projection is largely based on central banks and private investors competing for limited physical supply.5
There are several other notable forecasts.JP Morgan projects a possible climb to $4,000 per ounce if recession risks unfold, though their official target for the fourth quarter of 2025 remains at $2,950. Economist Peter Schiff sees gold reaching as high as $5,000 per ounce. While both Yardeni Research and investor Jeffrey Gundlach expect prices to hit $4,000.6
Physical Gold Preferred
While ETFs and mining stocks offer gold exposure, they are also tied to broader market risks. George Milling-Stanley is chief gold strategist for State Street Global Advisors. He cautions that gold mining stocks, in particular, tend to underperform during market downdrafts. That’s why he, along with many seasoned investors, prefers owning physical gold.
Why Buy Now?
Simply put: the opportunity cost of waiting is high.
Gold has already delivered a 44% return over the past 12 months and shows no signs of slowing. Central banks are still accumulating it. Investors are rotating into it. And economic uncertainty, labor market weakness, rising tariffs, geopolitical tensions, and questions about future leadership at the Federal Reserve, are not going away.
Investors are adopting a fundamental shift in how they approach risk. Gold is emerging as the cornerstone of financial protection in this new environment.
Conclusion
Economic uncertainty, ongoing trade wars, recession fears, and steady central bank buying are all driving gold prices higher. With these powerful factors at play, protecting your financial future with physical gold has never made more sense. If you’re ready to strengthen your portfolio and safeguard your wealth, call us today at 800-462-0071 to discover how physical gold in a Gold IRA can provide lasting financial security.
