Gold – What’s Happening?

3. Dollar Decline

Historically, Gold moves in an opposite direction to the US Dollar (see chart below).  So it serves as a good hedge for US assets.

Since Trump came to office, the dollar has fallen by approx 10%, driven by central bank selling and an overall loss of confidence in the US.

Notice how Gold appreciates when the dollar declines.  This trend accelerated in 2025  …

In our Growth–Protection–Income (GPI) framework, gold sits firmly in the Protection bucket, alongside other assets designed to act as portfolio insurance.

As you will know, I’ve been particularly positive on gold for the last 18 months – which I’ve written about several times.  The recent price action is just a continuation of the trend we identified early.

Returning to the big question: “Should I buy gold at these levels?”

My answer is the same as it was 18 months ago …

• See Gold as your insurance, or portfolio protection.  Think of any upside as a bonus.  You hold it as a set-and-forget part of a balanced GPI portfolio
• Use Options to earn income on Gold (see below)
• And own Gold with ETFs, not through bullion dealers

Whether gold pulls back or continues to rise from here, its purpose doesn’t change.

Gold Is not something you CHASE or TRADE, it’s something you OWN.

Bottom Line

Gold’s resurgence is a useful reminder of why we keep our portfolios balanced in our GPI Portfolio:

• Growth ETFs for long-term wealth
• Protection assets for stability and insurance
• Income strategies for regular cashflow
  • We can earn income on our Gold, through Options

When you have a properly balanced portfolio with all three elements you won’t need to predict, monitor or stress about market moves.

Always Remember:

• Time in the Markets always beats timing the markets
• Stay Diversified 
• Minimise those leakages:  Fees, Inflation, and Taxes
• Financial Markets are a great source of recurring income  
• ETFs, Balanced Funds and Options achieve all the above
• Being educated helps you outperform 99% of the population

… to ensure your investments work for YOUR financial freedom (not someone else’s)     

And … 

For more guidance, our Investment Academy will help you implement all of this in a step-by-step way.   

Thousands of people have learnt how to diversify and pound-cost-average into low-cost, set-and-forget ETFs & Funds for inflation-beating growth.  And Options to create recurring income.

Click here to learn about our Investment Academy

Finally …

– Don’t take the above as advice as it may not apply to you personally

– Your Capital is at Risk

– You may not be covered by the FSCS

– Anything mentioned in a podcast or in a previous article was valid at that time and may not continue to be now