Gold dazzled last year, but may lose some lustre in 2025

WHEN investors long for a steady asset in times of uncertainty, gold stands out as a solid portfolio diversifier that weathers not only geopolitical upheavals, but also fiscal risks.

Even if we strip out last year’s sharp rise in gold prices, it is clear that the purchasing power of gold has remained steady over centuries. As JPMorgan put it in 1912: “Gold is money. Everything else is credit.”

The yellow metal’s spot price had risen 26.5 per cent through 2024, after having shot up by 34.4 per cent on Oct 31, amid the uncertainty in the lead-up to the US presidential election.