By Shayne Heffernan, Founder, Knightsbridge Group
March 1, 2025
If you’ve been following the markets this year, you might have noticed gold holding strong, and I want to explain why it’s worth a closer look for investors. At the Knightsbridge Group, we’ve been tracking the gold market carefully, and as we move through early 2025, I’m confident it offers a reliable choice in uncertain times. With decades in this field, I’ve seen patterns like this before, and the numbers suggest gold could be a smart move right now.
The global economy is feeling unsteady—look at the Consumer Confidence Index dropping to 98.3 in February 2025—and inflation has edged up to 6% in February, from 5.2% in January, according to recent reports. These conditions are pushing investors toward gold as a stable asset. It’s always been a fallback when things get rocky, and in 2025, it’s showing its value again. Central banks, especially in places like China and India, have been adding to their gold reserves at a remarkable pace—over 1,000 tons in 2024 alone, from what I’ve heard—and that steady demand isn’t letting up.
From a technical perspective, gold’s recent moves are encouraging. Over the past few months, it’s climbed consistently, moving past resistance at $2,300 and staying above its 200-day moving average, which is around $2,350. That’s a solid sign in my experience—gold isn’t just drifting; it’s maintaining a steady upward path. The Relative Strength Index, or RSI, is sitting near 62, which tells me it’s not at risk of being overbought (that would be above 70), so there’s still room for growth without an immediate downturn. Trading activity has also picked up on major exchanges like the London Bullion Market and COMEX, especially in February, with data pointing to daily volumes reaching 300,000 contracts. That level of activity shows big players—hedge funds, central banks, and retail investors—are showing steady interest, keeping the market active.
Some might argue gold feels outdated compared to the excitement around cryptocurrencies or tech stocks. I get it—Bitcoin hit $82,000 on major exchanges as of yesterday, and I’ve seen its appeal. But gold stands apart. It doesn’t face the same ups and downs or regulatory challenges that crypto does. Even with the Bybit Ethereum breach in February 2025 shaking up crypto markets, gold stayed firm, trading near its recent highs. And with global tensions on the rise—think trade frictions between the U.S. and China, uncertainties in the Middle East—gold’s role as a dependable asset is clearer than ever.
I’ve watched this play out before. Back in 2020, during the COVID crash, gold rose from $1,500 to over $2,000 an ounce in just a few months. We’re in a similar situation now, with economic confidence shaky and inflation climbing. But gold isn’t just a defensive choice—it can also offer solid returns. With interest rates likely to stabilize in 2025, per market discussions, and central banks continuing to buy at unprecedented levels, gold could reach $3,000 by the end of the year. That’s a 22% potential increase from where it stands now, and I see good reason to believe in that path.
At Knightsbridge, we trade gold exclusively at Rock-West, and our partnerships with global players like Rock-West are helping us manage these opportunities effectively, opening new avenues for growth. For investors, gold makes sense right now—whether you’re buying physical bullion, gold ETFs, or futures on platforms like COMEX, it’s a steady option worth considering.
Don’t let skepticism hold you back. Gold has been a reliable store of value for centuries, and 2025 looks like a strong year for it. Check the charts, follow the trends, and think about adding gold to your portfolio while the price is still favorable—this could be a smart move for the long term. I’m encouraged by its potential, and I believe it’s a wise choice for anyone looking to secure their financial future.
