Is gold still worth buying? From an investor's perspective, is now a good time to sell gold?

The performance of gold prices over the past year has been remarkable. Starting from October 2023, an upward trend began, rising steadily to reach $2,700 in October 2024, and surpassing the $4,000 mark after entering 2025. According to the latest survey of analysts by Reuters, the average gold price for the entire year of 2025 is expected to be around $3,400, with the possibility of further rising to approximately $4,275 in 2026.

Faced with such a rally, investors’ most concerned questions are nothing more than three: Is the current gold price still cheap? Is it still suitable to enter now? When is the best buying point? This article will analyze the logic of gold investment from three dimensions: fundamental drivers, technical signals, and investment tools selection.

Three Main Drivers Behind Gold Breaking Its All-Time High

As a financial asset that does not generate interest, the core logic of gold price fluctuations is the shift in supply and demand. When investors (including individuals, institutions, and central banks) lose confidence in existing financial assets, they turn to “hard assets” like gold. What exactly has driven this strong buying wave?

Emerging US Dollar Credit Crisis

Since 2020, the US has implemented unlimited quantitative easing to address liquidity issues, but this has exported inflationary pressures globally. Subsequently, in 2022, the US began an aggressive rate hike cycle. These policy measures led to a significant devaluation of US and global debt, further weakening market trust in the dollar and US credit. The erosion of cash purchasing power has forced investors to seek alternative stores of value, making gold the top choice.

Increased Competition from Alternative Assets

Bitcoin’s price has broken through $100,000, and the Trump administration has explicitly stated plans to include Bitcoin in the US strategic reserves. Such cryptocurrencies’ strength also reflects a crisis of confidence in the dollar. Coupled with rising geopolitical risks, safe-haven funds continuously flow into gold and other alternative assets, boosting demand.

Reshaping of Financial Regulatory Framework

The most overlooked but profoundly impactful change is the modification of the Basel Accords. The status of gold has been upgraded from Tier 3 capital to Tier 1 capital, on equal footing with government bonds and cash, greatly enhancing its liquidity recognition. This has encouraged large-scale gold purchases by global banking systems because, compared to the continuously printed fiat currencies, gold’s scarcity and extraction costs will only increase year by year, strengthening its value preservation potential.

Is Gold Still a Valuable Investment at This Stage?

The short answer is: Yes, but precise timing is essential.

In the context of continued US rate cuts and a weakening dollar, gold’s position as a “Tier 1 asset” will continue to strengthen, with substantial funds flowing out of the currency markets into gold. But this does not mean gold will rise infinitely—in fact, gold faces dual competition from bonds and cryptocurrencies.

Rate cuts are positive for the bond market, potentially attracting some safe-haven funds. Trump’s strategic support for Bitcoin will also divert potential investors. Therefore, our judgment is: Gold will continue to rise in the future, but the growth rate will gradually slow, and volatility may even increase.

Looking at recent price trends, gold is already at a relatively high level, while US Treasuries remain at lows. Compared to the highly volatile Bitcoin, gold offers a more stable store of value. For conservative investors, gold remains an indispensable part of asset allocation.

Using Technical Analysis to Find the “Buy Point” for Gold

Blindly chasing highs is not wise. True investment opportunities appear during price pullbacks.

From a technical perspective, gold prices are still operating within an upward channel. The Bollinger Bands indicator shows that gold is fluctuating within a band, with the lower band serving as a key support level and buy signal. When gold prices retreat close to the lower band, it is an ideal entry point for long-term investors.

This means investors can operate along the Bollinger Bands channel, avoiding blindly chasing highs or being overly pessimistic. Historical data shows that gold prices are not always rising straight up; each significant correction has presented excellent buying opportunities. As long as the fundamentals (global economic environment, geopolitical tensions, central bank policies) do not fundamentally improve, the medium- to long-term upward trend of gold will continue.

Choosing the Right Tools to Reduce Investment Costs

There are many ways to invest in gold, but the costs vary greatly:

Physical Gold has wide bid-ask spreads, poor liquidity, high storage costs, and is not suitable for individual investors.

Futures and Options offer good liquidity but require high account opening thresholds and margin requirements. The nonlinear payoff features of options also make them difficult for non-professional investors to handle.

CFD Contracts are the most suitable tool for individual investors. Gold CFDs track spot gold prices, allow leverage trading, are convenient to trade, and do not require rolling over contracts like futures or dealing with options complexities. They are low-cost and highly flexible, making them the best choice for individual investors to participate in gold trading.

For example, through some reputable trading platforms, you can open a gold investment in just three steps: fill out the application and complete registration, deposit a minimum of $50 (supporting fiat currency deposits), and then quickly place orders without complicated procedures.

Who Should Invest in Gold?

The answer is: almost everyone.

Central banks invest in gold to hedge against inflation and for strategic reserves. Hedge funds worldwide regard gold as an essential asset because of its low correlation with other assets, effectively smoothing net asset value fluctuations. Individual investors can diversify their assets through gold, leveraging its dual functions of hedging and inflation resistance.

The key is to choose the most suitable investment method based on your risk tolerance and investment horizon. Aggressive investors can use CFDs for leverage; conservative investors can allocate physical gold or ETFs; professional investors can participate in the futures market.

Summary: Seize the Golden Window for Gold Investment

The fundamental reason for gold’s new highs is the re-pricing of credit in the global financial system. This macro logic will not change in the short term.

From a fundamental perspective, gold still has long-term upside potential; from a technical perspective, short-term pullbacks are the best entry opportunities; from a tool selection standpoint, CFDs are the lowest-cost and most efficient option for ordinary investors.

Unless the US government mandates a specific proportion of US Treasuries for global central banks (which is highly unlikely), based on current economic developments, as long as gold prices retreat to the lower band of the Bollinger Bands, it will be a buy signal that long-term investors should not miss. The time to sell gold is not yet here, but waiting for the next buying opportunity is the wise choice.