Buy gold this month?

Last month, in June, the gold price dropped from $1,916 to $1,761. Currently, gold remains under pressure due to the U.S. Federal Reserve and the possibility of an unexpected interest rate hike.

No advice

We would like to state that we do not provide investment advice or an answer to the question, should you buy gold this month? We only provide information about the market situation that will allow you to make this decision better informed. See also the disclaimer at the bottom of this page.

Long-Term Gold Price

Many people tend to focus on the short-term gold price. If the price drops, they want to buy as cheaply as possible, and if the price rises, they want to sell for the highest possible price. This is financially appealing, of course, but also labor-intensive — and due to premiums on buying and selling gold, not always profitable.

When looking at the long-term gold price, you’ll see that the price of gold has risen steadily over the past 25 years. From this long-term perspective, it's not strange to consider buying gold this month rather than selling, even if the short-term price fluctuates a bit more.

Political Influences

Political policy can influence the gold price. A good example is the erratic U.S. political climate in the first half of 2025. This created turmoil on the stock and transport markets, which in turn affected the gold price.

It may be useful to take upcoming elections or changing political policies into account when deciding whether to buy or sell gold. However, this is difficult because political policy is unpredictable, as is its impact on markets. Again, it helps to look back at the long-term trend of gold, which has risen steadily over 25 years and is only moderately influenced by political policies that often change after an election cycle.

Economic Influences

Economic developments naturally influence the price of precious metals. This is especially true for silver, which is more of an industrial raw material than gold. Depending on the strength of the economy, demand for gold may fluctuate. However, gold is typically seen as a safe haven, so demand usually increases during political or economic uncertainty.

It’s useful to follow economic news when deciding to buy gold this month. Still, demand for gold has remained relatively high in recent years, even as the economy has grown since the COVID crisis. So a growing economy doesn’t necessarily mean a lower gold price.

Climate Change and Sustainability

One possible explanation may lie in climate change. There is scientific consensus that the climate is changing, and its effects are increasingly visible in the economy and in political decisions.

The influence of climate change on precious metals is mixed. On the one hand, there's growing demand for metals in sustainable industries like solar panels and wind turbines, and the uncertainty surrounding climate change might push prices up. On the other hand, climate change can negatively impact the economy and increase political divisions.

Climate change also encourages more sustainable industry practices, like environmentally friendly gold mining and recycling of metals. But because these are still relatively small-scale, they don’t significantly affect gold prices — at least not yet.

Crypto and Technology

There’s also the factor of technology. Increasingly, technology is being used for payments — for example, cryptocurrencies like Bitcoin, but also more and more card payments in stores. At the same time, cash is facing more restrictions, making it harder to anonymously purchase precious metals.

Technology also influences the market in other ways. A recent article discussed how AI was used to discover a new copper mine in Africa. Technologies like AI and robotics can change how the economy is structured. These developments may influence the gold price, especially in terms of how practical gold remains as a safe haven for savings.

Uncertain Outlook

The main conclusion is that there is a lot of uncertainty in the market. Climate change and technological developments, in particular, are rapidly shaping economic and political landscapes. This makes it difficult to predict how the economy and politics will evolve.

So, should you buy gold this month? That’s a hard question to answer — especially since we do not give investment advice. Past performance is no guarantee of future results, but the gold price graph of the past 25 years certainly raises the question of whether buying might be smarter than selling right now

Disclaimer: The Silver Mountain does not provide investment advice, and this article should not be regarded as such. Past performance is no guarantee of future results.