Gold: Enters New Phase After Sharp Rise – What Analysts Say

Gold appears to be entering a new phase, having outperformed a key indicator of the US stock market. According to DataTrek Research, gold has outperformed the S&P 500 by 616% over the past 20 years, compared to the S&P 500's 421% gain.

On Friday, August 1, gold was trading at $3,416/ounce, up approximately 29% since the beginning of 2025, according to FactSet data.

Akash Doshi, head of gold strategy at State Street Investment Management, stated that gold is near its all-time high. Demand for alternative investments, concerns about public debt, and the weakening US dollar are supporting gold's rise. Central banks have been increasing gold purchases since the pandemic, while investors are reallocating capital to gold-backed mutual funds.

DataTrek notes that gold has historically acted as a risk hedge during times of crisis, but the period since 2020 suggests a new pattern, where gold performs well even during periods of market calm. Nicholas Colas, co-founder of DataTrek, reports that since 2020, gold has consistently outperformed due to geopolitical tensions and purchases by central banks outside the US.

Doshi notes that the impact of tariffs remains uncertain, while the potential for inflation volatility may be fueling interest in gold. Colas emphasizes that gold remains an added value in a diversified portfolio.

Source: newmoney.gr