Gold prices above $2,000 per ounce may seem like old news, but it was just two years ago the price of gold crossed the historical barrier for only the second time in history. At the time this was written in March of 2022, gold surpassed $2,000 due to geopolitical events. On the following day, it dipped to $1,990 before going back above $2,000 for the second day in a row. Today, gold has traded above $2,000 per troy ounce consistently since December of 2023, reaching an all-time high of $2,790 in October 2024. Some believe gold will reach $3,000 in 2025, making the previous barrier of $2K seem like ancient history.
Gold’s First Time Above $2,000 Per Troy Ounce
On August 7, 2020, the price of gold reached $2,074 per ounce, passing the $2,000 ceiling for the first time ever. This incredible moment came during a time of global uncertainty caused by the COVID-19 pandemic, which had shaken economies and left people looking for stability. With interest rates at record lows and the U.S. dollar losing some of its strength, gold became an even more attractive choice for investors to diversify their portfolios. Many turned to it as a safe haven, a reliable way to protect their wealth during a tough time. It was a clear reminder of gold’s timeless value, especially when the world feels unpredictable. Although it went to this new all-time high, it didn’t stay there. The price of gold decreased later that month and didn’t return to $2,000 until March of 2022.
Why Did the Price of Gold Pass $2,000 an Ounce in March 2022?
On February 24, 2022, Russia launched a full-scale invasion of Ukraine. In the immediate aftermath, the price of gold dipped before sharply increasing over the next two weeks. It reached its peak on March 8, 2022, when it hit $2,045 per troy ounce. This was only the second time in history that gold passed $2,000.
This increase in gold prices was driven by several factors. The invasion caused volatility in global markets, disrupted energy supplies, and spurred concerns about inflation as commodity prices rose. The uncertainty surrounding economic sanctions on Russia and their ripple effects on global trade pushed investors toward assets that preserve value during crises. Gold’s dual role as a hedge against both inflation and geopolitical instability reinforced its appeal, making it a preferred choice for individuals and institutions during this turbulent period.
In this instance, the price of gold only stayed above $2,000 per troy ounce for a few days before dipping. It’s range fluctuated for the next year before it reached the price again amidst bank failures in March 2023. In December 2023 gold crossed $2,000 for the fourth time, and hasn’t looked back.
As geopolitical events continue to occur, and the price of gold sees more movement, precious metals remain a good hedge against the instability seen in the market today. If you are waiting for the right time to invest or the moment to invest further, now may be the time to grow your portfolios.
The Importance of Investing in Physical Gold
Uncertainty in the global market, economy, and geopolitical fronts leads people to search for ways to protect their wealth and further develop their investment strategies. Physical gold provides stability among the volatility of the stock markets during times of extreme highs and lows. As time goes on, the demand for gold has only grown and historically remains stable during inflationary times. When the world experiences unrest, gold can offer a low-risk and high-reward investment option for those searching for a hedge against inflation.
