After a brief dip, gold is continuing its record rally – heading directly for 2,700 US dollars (currently 2,571 euros). Analysts are projecting the price to soon reach 3,000 US dollars. Is it still worth entering the market? We reveal why the price of gold is rising again and whether an investment would pay off for you.

Significant gains after consolidation

The most coveted of all precious metals is shining again: the gold price is recovering steadily and currently stands at 2,668 US dollars (approx. 2,540 euros) per troy ounce, with an upward trend. After climbing to a record high of 2,789 US dollars per troy ounce (31.1 grams) just before the U.S. election, the gold price experienced a short-term drop. As many investors increasingly shifted their money into stocks and cryptocurrencies, it temporarily fell to 2,560 US dollars.

What’s driving this new rollercoaster? Following the political uncertainty in the U.S. and the result of the presidential election with Donald Trump as the winner, uncertainty over future economic policy has intensified. This has renewed demand for gold as a safe haven.

In addition, the prospect of further interest rate cuts by central banks makes the precious metal more attractive. Statements by individual members of the European Central Bank (ECB) suggest that key interest rates could be cut again in December. The market has already priced in a 25 basis point cut, and there is speculation that the ECB might even consider a 50 basis point move. This would correspond to a quarter to half a percent. Moreover, geopolitical flashpoints such as the wars in Ukraine and the Middle East are further fueling demand for gold.

Higher Returns than the DAX

So far this year, the results have been excellent: the price of a troy ounce of gold has increased by about 30 percent. In comparison, the most important German stock index, the DAX, has risen by around 14 percent in the same period. Investment banks like Goldman Sachs and Bank of America already see the $3,000 mark within reach for 2025.

Over the past five years, gold’s average annual return has been around 10 percent – three years with positive and two with negative returns. The average return for the DAX from 2019 through the end of 2023 was approximately 9.9 percent per year. Thus, gold has slightly outperformed the DAX.

Market participants also point to the fact that central banks themselves have increasingly been buying gold. The industry association World Gold Council confirmed that China’s central bank, in particular, has significantly increased its gold reserves in recent months. This has simultaneously driven stronger global market demand.

Even beyond 2025: a valuable investment

With high key interest rates, market participants tend to invest in safe but interest-bearing assets instead of gold, which yields no interest. But it’s not just upcoming interest rate cuts and central bank purchases that are driving gold prices higher—demand for safe-haven assets amid political uncertainty is also contributing. Analysts from Wells Fargo Investment Institute and Atlantic House Investments are already speaking of a “golden decade”: they foresee a sustained positive trend through 2030, with price targets ranging from $4,800 to $7,000 per troy ounce.

Gold is one of the oldest forms of money. For centuries, it has maintained a global reputation as the perfect crisis investment. Germans in particular love the precious metal: according to the World Gold Council, German investors bought over 185 tons of gold in 2022. Although demand temporarily dropped in 2023, it is still estimated that around 9,100 tons of gold are held privately in Germany—plus another 3,360 tons held by the Bundesbank, i.e., the German state.

But gold is not only extremely popular in Germany – it is considered one of the most sought-after investments worldwide.