Gold Price Surges: How it Affects the Logistics Ecosystem

Gold prices have surged dramatically over the past year, breaking new records and reaching an all-time high of $3,323 per troy ounce as of mid-April 2025. This marks an 88% increase in just five years, reflecting growing investor interest in the precious metal.

The rise has been fuelled by global economic uncertainty, which has been dramatically impacted by US tariffs, falling interest rates, and central bank purchases, among other factors.

The rally began in earnest in 2024, with gold surpassing $2,900 per troy ounce in February before hitting the $3,000 milestone in March, reaching $3,323 as of 16th April. Market turbulence and trade disruptions, especially those linked to Donald Trump’s tariff policies, have increased the market settlement for de-dollarisation, further intensified the demand for gold as a safe-haven asset.

Key factors at play

Several key drivers have contributed to the rapid appreciation of gold:

1. Interest rates and economic uncertainty

Historically, gold performs well when interest rates decline. As central banks lower rates to stimulate economic growth, traditional investments like stocks and bonds become less attractive, prompting investors to seek refuge in gold. The decision from the US Federal Reserve to keep rates unchanged in the 4.25%-4.50% range has certainly played a part. 

2. Central bank purchases

Central banks around the world, particularly in emerging markets like China and India, have been aggressively buying gold to diversify their reserves. In 2024 alone, global central bank gold purchases exceeded 1,000 tonnes for the third consecutive year.

China has even introduced a new program allowing insurers to invest in gold, potentially injecting an additional $27 billion in demand.

3. Geopolitical uncertainty and market volatility

Gold’s status as a safe-haven asset has become more relevant amid geopolitical tensions. The impact of Trump’s trade policies, escalating tensions in the Middle East, and concerns about future economic crises have driven investors toward gold as a hedge against financial instability.

4. Declining U.S. dollar value

A significant portion of gold’s recent price surge is tied to the weakening of the U.S. dollar. Since peaking in January 2025, the dollar has been in steady decline, making gold more expensive in dollar terms even if actual demand remains unchanged.

5. Speculative investment

With gold prices rising, speculative traders and hedge funds have piled into the market, further pushing up prices. The Chicago Mercantile Exchange (CME) reported record-high purchases of gold futures and options in early 2025. 

How the rising price of gold is impacting logistics

The surging value of gold is significantly affecting the global logistics sector, particularly in gold transportation and the security of precious metals.

Increased security costs

With each standard 400-troy-ounce gold bar now valued at well over $1 million, the stakes for secure transportation have never been higher. Banks, investors, and governments are demanding enhanced security measures to protect shipments from theft and fraud.

Greater demand for secure storage

Vault facilities, particularly in financial hubs like London and New York, are experiencing a surge in demand as investors seek secure locations to store their bullion holdings. The Bank of England's gold vaults, for example, have seen increased congestion, with long wait times for gold withdrawals.

More complex customs and compliance challenges

As more investors move gold across borders, regulatory scrutiny has increased. Governments are implementing stricter policies on gold imports and exports, adding delays and costs for logistics providers.

What this means for secure logistics providers and airlines in 2025

The rising price of gold is creating new challenges and opportunities for companies specialising in the secure transport of precious metals.

Higher insurance premiums 

With gold at $3,300 per troy ounce, insurers are raising premiums for shipments due to increased risks of theft, fraud, and transportation disruptions. At Ava, we understand the risks of transporting precious metals, and we have significantly increased our insurance to allow for the price rise in gold and silver, which allows us to provide more options for the market.

Increased demand for private security and secure transport services

Specialised precious metals logistics firms, armoured vehicle operators, and secure storage providers are experiencing a boom as demand for their services grows.

Every aspect of the precious metals ecosystem is experiencing unprecedented demands on its normal operating conditions.  In logistics, these include increased demand on vehicles and limited cargo capacity, which is a result of pressure to ship many products ahead of impending tariffs.  

At Ava, we pride ourselves on being creative and nimble in finding solutions which minimise these impacts.

Airlines adapting to changing trends

Airlines that transport gold are facing greater scrutiny and logistical hurdles. Some are modifying their security protocols and cargo handling procedures to accommodate the rising value of gold shipments.

Shifts in global trade routes

With gold moving in and out of financial centres more frequently, secure logistics providers are adapting to new trade flows, particularly as geopolitical risks shift gold reserves between key regions.

With heightened security risks and tighter regulatory controls, Ava continues to lead from the forefront.

Where others see obstacles, we see opportunity, rethinking secure logistics with smart, more adaptive solutions. By leveraging our global network, deep industry expertise, and a people-first mindset, we make sure that even the most sensitive shipments move swiftly, securely, and compliantly — regardless of how the landscape evolves. 

Will gold prices keep rising?

Judging by how quickly things have changed in recent years, predicting future prices with certainty is difficult, but there are several factors to suggest that gold’s rally may continue:

• Persistent economic uncertainty:  If inflation remains high and interest rates stay low, demand for gold as a hedge will likely persist.
• Further central bank purchases: Countries looking to reduce dependence on the U.S. dollar may continue accumulating gold, driving up prices.
• Increased speculative investment: As more investors bet on rising gold prices, speculative demand could sustain the rally.

Some analysts even suggest that gold could surpass $4,000 per troy ounce in the long term if current trends continue.

Risks to watch

Despite gold’s hopeful outlook, certain risks could slow or reverse the price increase. If the dollar recovers, gold prices could stabilise or decline.

Should central banks pivot toward tightening monetary policy, gold may become less attractive to investors. And, if speculative traders begin selling off gold holdings, prices could face short-term volatility.

A look into the future

The fleeting rise in gold prices has reshaped global investment strategies and created significant challenges for the logistics sector. Secure transport providers and airlines are navigating increased risks and costs as the value of gold soars. Whether gold will continue its climb remains uncertain, but given the economic and geopolitical landscape, its safe-haven appeal is unlikely to fade anytime soon.

At Ava Global Logistics, we understand the unique pressures of transporting high-value goods in an uncertain world. With a people-first approach, an unwavering commitment to innovation and a mindset of doing things differently, Ava is redefining secure logistics. Where others hesitate, we move forward — delivering smarter, safer solutions the Ava way.

Ava is your trusted guide through the shifting precious metals market. We cover six continents, with regional offices in major cities across the globe. Get in touch with your local expert to learn why Ava is the home of secure global logistics.