Gold futures opened higher on Monday, June 2, 2025, amid renewed U.S.-China trade tensions and broader financial market uncertainty, prompting investors to shift toward safer assets.
Gold (GC=F) futures began the session at $3,323 per ounce, up 1% from Friday’s close of $3,288.90. Despite the uptick, prices remain below the highs of over $3,400 reached in early May and late April.
The gains in gold come as U.S. stock futures declined, with the S&P 500 and Dow Jones both under pressure following a statement from China’s Ministry of Commerce announcing retaliatory measures over the U.S.’s alleged violation of a trade agreement. A weaker equities outlook has historically supported gold, which investors often turn to during periods of volatility.
Market Snapshot: Gold’s Recent Performance
Monday’s opening marks a near-flat performance over the past week, barely changed from $3,328 on May 23. Over the last month, however, gold futures have gained 2.6% compared to the opening price of $3,239.90 on May 2. Year-on-year, gold has seen a remarkable rise of 43% from $2,322.60 on June 3, 2024.
Why Investors Turn to Gold
Gold continues to play a vital role in portfolio diversification, particularly during uncertain times. Its ability to retain value when other assets fall makes it a key hedge against inflation, currency devaluation, and broader financial instability.
“Gold should be viewed as an insurance policy,” said Scott Travers, editor of COINage magazine and author of The Coin Collector’s Survival Manual. “I recommend that everyone buy a little gold as a hedge against calamity.”
Gold is not only seen as a safe-haven asset but also as a potential medium of exchange in extreme scenarios, such as a collapse in the value of the U.S. dollar.
Investing in Gold: A Strategic Approach
For those considering entering the gold market, experts recommend a four-step process:
Set Your Goal: Understand whether you’re seeking diversification, inflation protection, or crisis insurance.
Set an Allocation: Decide how much of your portfolio to allocate, based on your risk tolerance.
Choose a Form: Options include physical gold, ETFs, mining stocks, or futures contracts.
Consider Your Timeline: Gold often performs best over longer investment horizons or during economic downturns.
Gold has gone through extended cycles. It surged between 2009 and 2011, followed by nearly a decade of muted performance. Long-term investors may choose smaller allocations during down cycles and higher exposure during bullish periods.
Analysts Remain Bullish
Many analysts remain optimistic about gold’s outlook. Goldman Sachs Research in May forecast gold could reach $3,700 per ounce by the end of 2025, citing increased central bank purchases and ongoing uncertainty around U.S. trade policies.
For more insights, Yahoo Finance provides tools such as its Gold Industry Screener, offering investors the ability to track top-performing companies and customize portfolios using over 150 screening criteria.
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