### Gold's Meteoric Rise Set to Continue Amid Uncertainty, Expert Predicts

Nervous investors seeking refuge from inflation, geopolitics, and tariff turmoil have turned to gold, and their decision has paid off handsomely. This year alone, the precious metal is up nearly 30%, following a gain of more than 25% in 2024, totaling a 44% increase over the last 12 months. As measured by SPDR Gold Shares (GLD), the three-year annualized return on gold stands at 21.4%, far surpassing its historic average annualized return of just under 8% from 1971 to 2024. The question on everyone’s mind is whether this impressive run can sustain.

George Milling-Stanley, the chief gold strategist for State Street Global Advisors, remains optimistic. In a recent interview on "Money Life with Chuck Jaffe," Milling-Stanley projected record gold prices repeatedly breaking through the end of the year. Citing ongoing geopolitical turmoil as a critical driver, he argued that gold has consistently performed well during such uncertain times. With five decades of expertise and a role in developing GLD, the world's first gold-backed ETF, Milling-Stanley’s insights carry significant weight.

Despite gold's recent surge coinciding with rising inflation, Milling-Stanley contends that inflation alone isn't fueling this run. He believes gold serves as an inflation hedge only during extended periods of high inflation—defined as sustained price increases of 5% or more for over two years. According to him, the current level of inflation doesn’t fit this criterion. Instead, it is the overarching uncertainty, encompassing interest rate unpredictability and macroeconomic instability, that provides gold its compelling upside potential.

Milling-Stanley highlighted that emerging tariff policies and their impact on global markets have led State Street to continually revise their gold price forecasts for 2025. He noted that gold seems to have established a new price floor above $3,000 per ounce, a considerable jump from last year’s floor of $2,000 per ounce. Given this new baseline and recent gains, Milling-Stanley would not be surprised to see gold consolidate within the $3,000 to $3,500 range. However, his bullish outlook suggests that breaking past the $3,500 resistance could see prices soaring to $3,900.

Reflecting on historical market downturns such as Black Monday in 1987, the dot.com bubble burst in 2001-2002, the 2008 financial crisis, and the 2020 onset of COVID-19, Milling-Stanley emphasized gold's protective attributes. Unlike gold miners, which have historically underperformed in market downturns, the physical metal retains its appeal for its stability and security. He asserts that most investors are drawn to gold not for short-term gains but for its long-term protective benefits.

In sum, while gold's recent performance has been dazzling, its fundamental role in providing stability in times of turmoil remains its most compelling feature. For investors, gold's enhanced profit potential shines even brighter in today's uncertain economic landscape.