Gold (GLD) Closes Out Its Best Quarter Since 1986 amid Flight to Safety
Gold hasn't shone this bright in nearly 40 years.
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The precious metal that is widely used to make jewelry just posted its best quarterly performance since 1986 amid a flight to safety among skittish investors worried about trade wars, geopolitical instability, and a potential U.S. recession. The spot price of gold rose 19.3% in this year's first quarter to finish trading on March 31 at an all-time high of $3,157.60 per ounce.
The last time gold performed this well was the third quarter of 1986, when it gained 24% immediately after the Chernobyl nuclear disaster when the world was on edge and investors were seeking safe haven assets. Gold has hit 18 closing highs so far in 2025 and we're only three months into the year.
More Gains Ahead?
In addition to investors buying physical gold and spot gold exchange-traded funds (ETFs), the yellow metal also continues to benefit from robust buying among central banks around the world. In China and elsewhere, central banks are buying physical gold amid global uncertainty and to lessen their exposure to the U.S. dollar, which is the world's reserve currency.
Expectations for two to three interest rate cuts from the U.S. Federal Reserve this year is also underpinning the price of gold as lower rates reduce the opportunity cost of holding gold. The rally in gold's price is having a cascading effect, lifting the price of gold miner stocks such as Barrick Gold (GOLD), and even retailers such as Costco Wholesale (COST) that sell gold bars to consumers.
Is the GLD ETF a Buy?
(GLD), so we'll look at the ETFs three-month performance instead. As one can see in the chart below, the GLD ETF has risen 15.74% in the last 12 weeks.
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