By Ambrose O’Callaghan
Gold stands as one of the oldest and most dependable stores of value. Because of this, many investors continue to turn to the yellow metal as a suitable hedge against inflation or a volatile market. In this piece, we will examine the bullish case for gold as it continues to trade near its all-time highs at the beginning of 2025. After, we can look at how Harvest ETFs provides investors the opportunity to access to the biggest names in the gold mining space.
Why gold surged in 2024 – And where it could go in 2025
The spot price of gold was trading at US$2,792.65 per ounce in mid-afternoon trading on Thursday, January 30, 2025. Gold has sustained the momentum it built in late December, and looks poised to challenge the highs it reached in the fall of 2024.
Back in October 2024, Goldman Sachs unveiled a research note in which it predicted that gold would climb higher than expected as central banks moved to ramp up asset purchases in the midst of their monetary easing. The report stated that gold typically trades closely in line with interest rates, and has shown more value when rates fall. That relationship has held, but central bank purchases have also been a decisive factor. Analyst Lina Thomas predicted that gold would rise to US$3,000 per ounce by the end of 2025.
However, in January 2025, Goldman analysts Lina Thomas and Daan Struyven revised that target price. They lowered it from $3,000 per ounce to $2,910 per ounce. Both predicted that gold would hit the US$3,000 target by mid-2026. This was due to the lower-than-expected rate cuts projected by the Federal Reserve going forward.
Regardless, the heightened odds of falling rates, albeit at a more gradual pace, is a bullish indicator for the yellow metal going forward. Further gold has benefited from the geopolitical uncertainty that prevails. On the demand side, we saw countries like India, China, and Russia make pivots toward gold in 2024. For investors, any pullback in the price of gold will likely be viewed as a solid buying opportunity.
How the Harvest Global Gold Giants Index ETF stands out
The Harvest Global Gold Giants Index ETF (HGGG:TSX) is designed to give investors gold exposure through profitable large-scale gold miners. This is meant to minimize the impact of fluctuating gold prices for a portfolio, particularly on the downside.
Annualized Performance
As at December 31, 2024
| Ticker | 1M | 3M | 6M | YTD | 1Y | 2Y | 3Y | 4Y | 5Y | SI |
|---|---|---|---|---|---|---|---|---|---|---|
| HGGG | (5.79) | (4.93) | 15.63 | 26.68 | 26.68 | 14.79 | 7.99 | 2.03 | 6.93 | 9.67 |
Some of the big names in this portfolio include top gold miners like Newmont Corporation, Kinross Gold, Agnico Eagle Mines, and B2Gold. Gold miners have been huge beneficiaries of the surge in the metal’s spot price.
In a nutshell, gold continued to benefit from shifting policy on interest rates and geopolitical uncertainty. So, investors looking to reap these benefits can look to the Harvest Global Gold Giants Index ETF that provides a longstanding source of defensiveness and ballast that can fit their portfolios.
Disclaimer
Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds (managed by Harvest Portfolios Group Inc.). Please read the relevant prospectus before investing. The indicated rates of return are the historical annual compounded total returns (except for figures of one year or less, which are simple total returns) including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. The funds are not guaranteed, their values change frequently, and past performance may not be repeated. Tax investment and all other decisions should be made with guidance from a qualified professional. The content of this article is to inform and educate and therefore should not be taken as investment, tax, or financial advice.
