The year 2024 has seen a great deal of geopolitical turmoil. As the year ends and we look ahead to 2025, it may be worth taking a moment to examine how these conflicts are unfolding and what they mean for the world—and your own future.
Recent weeks have seen a spike in geopolitical conflict.
The past few weeks are a sign that no matter how much conflict the world seems to be experiencing, new, expanding, or revitalized conflict is always possible.
For example, before this past week, the Syrian civil war had been in a state of ceasefire since 2020. But then rebel groups seized control of major cities including Aleppo and Hama before President Bashar al-Assad fled the country. The rebels then seized the capital, Damascus. Now the nation has multiple factions vying for control, rendering the nation a hotspot of turmoil and leaving the world wondering what will happen next.
On the other side of the globe, South Korean President Yoon Suk Yeol declared martial law in the country for the first time since 1980, citing the threat of North Korean forces. Parliament then unanimously voted to overrule the martial law declaration, eventually forcing the president to lift martial law. While this particular incident seems over (for now), tensions remain.
Although unrelated, these conflicts reflect an ongoing trend of instability.
The conflicts that stoked geopolitical turmoil in 2024 are poised to continue in 2025.
The war between Russia and Ukraine is ongoing, and the recent entry of North Korean troops into the conflict, as well as loosened restrictions on Ukrainian use of U.S. supplied munitions, could lead to further escalation. Peace talks are underway in the Israel-Hamas war, but until a resolution is agreed upon, that conflict also remains ongoing.
Meanwhile, China still has its sights set on taking control of Taiwan. And according to reports by The Wall Street Journal, China has been studying how international sanctions are affecting Russia to better prepare for its own potential sanctions if it invades Taiwan.
Gold continues to serve as a safe haven from the economic effects of geopolitical conflict.
Geopolitical risk drives safe-haven demand for assets like gold. This is a historical observation, but also holds true for recent events, as geopolitical tensions have been a major driver of gold’s 2023–2024 rally. According to the World Gold Council, the Russia-Ukraine war sparked a safe-haven rush in Eastern Europe, with nations such as Poland and the Czech Republic leading in gold purchases for the third quarter of 2024.
As these conflicts continue into 2025 and beyond, it’s not hard to see how this trend of geopolitical volatility could continue to drive demand—and prices—for gold.
