The worth of gold continues to rise, with the gleaming steel once more catching investor consideration world wide over latest weeks. However what’s fuelling the brand new “gold rush?”
The worth of gold has been rising for the reason that pandemic, and particularly inside the previous few months, when it set a brand new document on a number of events.
On Oct. 7, the primary gold futures price went above US$4,000 an ounce for the first time, and reached an all-time excessive of roughly $4,380 on Oct. 20. As of publication, the worth was hovering round $4,130.
To this point in 2025, gold futures have grown in worth by about 60 per cent and that will depart some questioning if now could be the time to purchase.
“There’s something of a gold rush on in the mean time. Gold, within the fall of 2025, is one of the best performing asset class of the yr by far, alongside different treasured metals like silver and platinum,” says Adrian Ash, director of analysis at gold shopping for and promoting platform BullionVault.
“A bodily lump of uncommon treasured steel acts as foreign money that doesn’t depend on any authorities survival or any regime or jurisdictions or authorized permanence and continuity for it to carry worth.”
Ash goes on to say gold is “the last word foreign money in a disaster,” and the way in latest weeks, “we’re an actual type of ‘disaster’ sized transfer into gold by buyers.”
So what’s driving the worth proper now?
What’s behind the brand new ‘gold rush’?
Provide and demand is without doubt one of the principal components that drive the worth of gold, that means the extra that patrons need to buy the steel for any purpose, the upper its value turns into.
Get weekly cash information
Get professional insights, Q&A on markets, housing, inflation, and private finance data delivered to you each Saturday.
Gold’s worth is measured most frequently primarily based on the worth it’s anticipated to succeed in inside the subsequent few months — often called gold futures. This components in ranges of provide and demand primarily based on present traits, in addition to geopolitical dangers, and financial gauges, together with inflation.
“With gold, you’re basically speculating that the worth will go up long-term. Attempting to find out that could be a little bit of a guessing recreation as a result of we don’t know if demand will go up with time — it may very well be a short-term pattern that adjustments,” says Devin Cattelan, a portfolio supervisor with Verecan Capital Administration.
“Gold isn’t one thing that protected and secure as an funding as a result of it does fluctuate over time.”
Traditionally, Ash says gold tends to do higher in additional unsure and risky financial instances as a result of it isn’t as uncovered to financial dangers, whereas stronger durations for the worldwide financial system might encourage buyers to buy shares, actual property and different belongings and drive the worth of gold down.
It’s because, in principle, gold will maintain its worth higher throughout financial downturns like a recession, or geopolitical occasions like a conflict — or a pandemic.
“The pandemic was a very popular interval for gold. Gold actually got here into its personal as a retailer of worth when the worldwide financial system shut down,” Ash says.
Ash additionally says that though gold has been on a gradual rise over the previous few a long time, the latest spike in costs dates again largely to final fall.
“The commerce tariffs clearly have actually spooked all people,” Ash says.
Through the United States election in 2024, then-Republican candidate Donald Trump campaigned on using tariff policies to spur financial development within the U.S.
In October 2024, gold was value roughly US$2,700.
Ash believes that after Trump gained the election and have become president, buyers prioritized shopping for gold due to the anticipated detrimental impacts of tariffs on international economies, which meant a rise in demand and rising costs.
In latest weeks, that volatility dialled up, and so too have costs for gold.
“What you’ve obtained in the mean time is you’ve obtained recent uncertainty round Trump’s policy towards China, and flip-flopping on his support for Ukraine. On the identical time, domestically with what’s taking place with ICE and the National Guard, with John Bolton being arraigned, I believe lots of people are very spooked by all of this, so cash managers, asset managers have made an actual return to gold,” Ash says.
However attempting to leap on the gold rush might include dangers, consultants warning.
“There have been lots of people who really helpful shopping for marijuana shares when marijuana was changing into authorized (in Canada). The business took off, however then reversed course shortly after, and lots of people misplaced some huge cash in that house,” Cattelan says.
“Time and time once more, we see traits that emerge and evolve, and a few individuals can earn cash in the event that they get in and get out on the proper time. However there are lots of people who lose cash as a result of they get in on the flawed second.”
Though gold as an funding seems to be a stable selection now, the beneficial properties is probably not sustainable and may change with out warning, Ash says.
“It’s very tough to see this present fee of acceleration persevering with for much longer,” he says.
“I’d counsel, don’t be rushed by the worth motion proper now. I believe it will be value taking a breath. FOMO is just not purpose to take a position.”
© 2025 International Information, a division of Corus Leisure Inc.
