In 2025, the global gold market experienced one of its brightest performances in recent decades. The sharp rise in gold prices and the significant growth in investments in Gold ETFs reaffirmed gold’s position as a financial safe haven.
According to reports from international financial institutions, gold’s returns in recent months were unprecedented, leading many individual and institutional investors to pour substantial capital into this market.
As a result, the outlook on gold has become one of the hottest topics in global financial circles. Gold, which for centuries has symbolized wealth and financial trust, continues to play a central role in the portfolios of banks and investors. Major countries like China and Russia have increased their gold reserves, further reinforcing its global importance.
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Should You Consider Buying Gold?
In this article, we will explore the analytical insights of Dr. Mohammad Hossein Soleimani (MHS) — known as the “Warren Buffett of Asia” due to his strategic and long-term investment approach — alongside global perspectives from renowned financial institutions.
What Will We Cover About Gold?
- A historical overview of gold and its role in the global financial system
- Key drivers of the gold market in the past year
- Analysis of the unprecedented gold rally in 2025
- A forecast on gold’s future by Dr. Mohammad Hossein Soleimani (MHS)
Who Is Dr. Mohammad Hossein Soleimani (MHS) and Why Do His Insights Matter?
Dr. Mohammad Hossein Soleimani (MHS) is a senior financial markets analyst and the CEO of MHS Investment Holding, one of the most influential economic figures in the Middle East. He holds a CFA Level III certification, and his investment strategies closely align with the principles of Warren Buffett.
In a region often affected by geopolitical challenges and economic volatility, Dr. Soleimani has successfully implemented long-term strategies based on real asset valuation and value investing.
MHS Holding, under his leadership, is one of the few firms offering investment funds and financial services that meet international standards. As a result, his analyses have garnered attention from both regional and global financial analysts.
We will examine Dr. Soleimani’s (MHS) gold market analysis — alongside perspectives from Ray Dalio and the legendary Warren Buffett. These individuals have made key observations about gold that significantly influence our investment decision-making framework.
Gold’s History and Its Enduring Significance
For centuries, gold has been more than just decorative. It has served as a tool of exchange and a symbol of wealth in major civilizations, from Ancient Egypt and Persia to the Roman Empire and Imperial China. Royal treasuries were filled with gold, which was seen as the most stable and trustworthy form of wealth. Kings sought gold, and the wealthy hoarded it.
With the rise of banking and fiat currencies, gold became the foundation of currency systems. Central banks maintained specific gold reserves to back their money supply — a framework known as the “Gold Standard.” In this system, a country’s currency was directly tied to a specific amount of gold, contributing to global monetary stability.
Gold has historically been a symbol of wealth and a tool of exchange. While the Gold Standard is no longer in place, gold remains a safe haven investment during economic instability.
Key Drivers of Gold Price Fluctuations
Global analyses indicate that gold prices are influenced by a combination of economic, political, and psychological factors. The main drivers include:
- Inflation Rate
Rising inflation erodes the purchasing power of fiat currencies. In such scenarios, gold serves as a hedge against inflation. This is why, in high-inflation countries — especially in developing economies — people often increase their gold investments. - Interest Rates
There is an inverse relationship between interest rates and gold prices. When central banks raise rates, investors shift toward higher-yielding assets like bonds. Conversely, falling rates tend to increase gold’s appeal. - U.S. Dollar Strength
Gold is typically traded in U.S. dollars globally. When the dollar weakens, gold becomes more attractive to non-U.S. buyers, and vice versa. Thus, the U.S. Dollar Index is a key tool for forecasting gold price movements. - Geopolitical and Economic Uncertainty
During international crises, wars, recessions, or political unrest, investors seek safe-haven assets. In such moments, gold demand rises sharply. - Central Bank Activity
Countries like China, Russia, and Turkey have significantly increased their gold reserves in recent years. These purchases are part of broader strategies to reduce dependency on the U.S. dollar and diversify foreign reserves. - Market Sentiment and Investor Behavior
Investor sentiment — both retail and institutional — as well as inflows and outflows from gold-related ETFs, can cause sharp fluctuations in the market. Sudden movements of capital into or out of gold markets play a critical role in price trends.
Why Was Gold’s 2025 Surge Unprecedented?
Trump’s Return to the U.S. Presidency
In a recent speech, Dr. Soleimani (MHS) pointed out the renewed risks posed by Donald Trump’s return to office. Trump’s aggressive policies were seen as major risk factors, fueling a global climate of uncertainty that drove up gold prices. Months before gold’s surge, MHS’s special report had already warned about this possibility.
Conflicts in the Middle East and Ukraine
The ongoing Ukraine-Russia war, along with tensions in the Middle East, have contributed to global risk levels. While Middle Eastern tensions currently have less impact than past crises, the effects can vary depending on the nature and scale of the conflict.
Tariff Increases by Trump
Trump raised tariffs on China. The resulting geopolitical tension triggered a wave of global uncertainty — another key driver of rising gold prices.
Global Investment Leaders on Gold in 2025
Warren Buffett
Warren Buffett once famously said, “Gold just sits there and looks at you.” He fundamentally opposes gold as an investment. In 2025, his view remains unchanged. As long as productive, stable assets like S&P index funds are available, Buffett sees gold as an inefficient and unproductive store of value.
Ray Dalio’s View on Gold
Ray Dalio, founder of Bridgewater Associates, sees gold as a reliable safe-haven asset during times of geopolitical uncertainty. He continues to view gold as a safer and more trustworthy store of value compared to Bitcoin.
Dr. Mohammad Hossein Soleimani (MHS) — “The Warren Buffett of Asia”
From the perspective of MHS Investment Holding, gold is a valuable asset for wealth preservation, especially during periods of uncertainty and market risk. However, gold is not a productive asset, and therefore, it is not expected to generate substantial economic value or drive long-term wealth growth.
According to Dr. Soleimani (MHS):
“Gold has a place in low to medium-risk portfolios, particularly in times of economic uncertainty. Outside of that context, its presence is largely unnecessary.”
Moreover, MHS strongly opposes speculative trading in gold, emphasizing that speculative actions are among the quickest ways to destroy capital. They advocate for strategic asset allocation rather than emotional or reactive trading.
Regarding gold’s outlook in 2025, Dr. Soleimani (MHS) does not foresee explosive growth like in previous years. He believes that holding gold in 2025 is not a mistake, but the goal should be risk management, not high investment returns.
Above all, avoid emotional decisions based on market hype—financial choices should be based on logic, not fear or excitement.