Gold Futures Update

Gold futures closed at $3,444.30 on Wednesday, marking a slight increase of 0.1% from the previous day’s $3,439.20. Interestingly, this new opening price is the highest we’ve seen since June 13 when it also reached $3,444.

This surge in gold prices coincides with a notable recovery on August 1, a time when mutual tariffs are a concern. Recently, President Trump announced new trade agreements with Japan, the Philippines, and Indonesia, setting import tariffs between 15% and 19%, and a hefty 40% on certain foreign goods coming through Indonesia. However, it’s worth noting that the U.S. has yet to finalize deals with the EU or India. In the backdrop, the U.S. dollar has seen a 10% decline this year, stirring global worries about the American economy, historically tied to lower gold prices.

On Wednesday, gold futures opened 0.1% higher than they closed on Tuesday, which reflects a 3.1% rise over the week when compared to the opening price of $3,341.20 on July 16. Additionally, in the past month, the prices have risen by 2.3% from $3,365.90 on June 23, 2025.

Choosing a Gold Investment

When it comes to investing in gold, there’s a four-step process, and today we’re diving into step three: selecting the right form of gold to acquire. After determining how much gold you want, you’ll need to choose from three main options:

1. Physical gold

2. Gold mining stocks

3. Gold ETFs

Pros and Cons of Physical Gold

Physical gold can include coins, bars, and jewelry. The benefits are pretty straightforward:

1. Immediate access. If you have physical gold at home, it’s readily available for use in emergencies.

2. No ongoing fees. Unlike gold mining stocks or ETFs, there are no management fees tied to physical gold.

However, there are downsides:

1. Theft risk. Proper storage is crucial since physical gold is vulnerable to being lost or stolen.

2. Less liquidity. Selling physical gold can be more complicated than trading stocks or ETFs.

Gold Mining Stocks: Pros and Cons

Investing in gold mining stocks gives you indirect exposure. The upside is:

1. Higher liquidity. Major mining companies usually offer tight bid-ask spreads, indicating good market activity.

2. No physical storage. Mining stocks are held in brokerage accounts, taking up no physical space.

On the flip side:

1. Increased volatility. These stocks can fluctuate more sharply than the price of gold itself.

2. No currency value. Mining stocks can’t be used as money like physical gold.

Gold ETFs: Pros and Cons

Gold ETFs invest in physical gold or mining stocks. Benefits include:

1. No storage hassle. Like mining stocks, ETFs do not require physical storage space.

2. Good liquidity. Popular ETFs often trade actively, making them easier to buy and sell.

3. Directly linked to gold prices. These funds tend to mirror gold price movements closely.

However, they do have drawbacks:

1. Management fees. For instance, SPDR Gold Shares charge around 0.40% annually.

2. No utility. You can’t use ETF shares for transactions in emergencies.

Gold Prices and Market Overview

Looking at trends, gold has historically shown prolonged cycles of growth and decline. After a period of expansion from 2009 to 2011, prices subsequently dropped without recovering new highs for almost a decade. Those inactive years could negatively influence your overall investment returns, suggesting perhaps a lower allocation might be wiser for some. Alternatively, if you’re willing to ride out rough periods for a potential payoff, a higher allocation might be the way to go.

Recently, there’s been a buzz about gold, and analysts are relatively optimistic. A Goldman Sachs survey hinted that gold might reach $3,700 per troy ounce by 2025, indicating a possible 40% increase based on January’s opening price. Demand from central banks and uncertainty over U.S. tariff policies continue to be major driving factors for this projected rise.

If you’re curious about gold’s historical performance, data has been available since 2000.