The value of gold continues to rise, with the gleaming metal again catching investor attention world wide over recent weeks. But what’s fuelling the brand new “gold rush?”
The worth of gold has been rising because the pandemic, and particularly inside the past few months, when it set a brand new record on several occasions.
On Oct. 7, the major gold futures price went above US$4,000 an oz. for the primary time, and reached an all-time high of roughly $4,380 on Oct. 20. As of publication, the worth was hovering around $4,130.
To this point in 2025, gold futures have grown in value by about 60 per cent and that will leave some wondering if now could be the time to purchase.
“There’s something of a gold rush on in the intervening time. Gold, in the autumn of 2025, is the most effective performing asset class of the yr by far, alongside other precious metals like silver and platinum,” says Adrian Ash, director of research at gold buying and selling platform BullionVault.
“A physical lump of rare precious metal acts as currency that doesn’t depend on any government survival or any regime or jurisdictions or legal permanence and continuity for it to carry value.”
Ash goes on to say gold is “the last word currency in a crisis,” and the way in recent weeks, “we’re taking a look at an actual sort of ‘crisis’ sized move into gold by investors.”
So what’s driving the worth without delay?
What’s behind the brand new ‘gold rush’?
Supply and demand is certainly one of the major aspects that drive the worth of gold, meaning the more that buyers need to purchase the metal for any reason, the upper its price becomes.
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Gold’s value is measured most frequently based on the worth it is predicted to succeed in inside the subsequent few months — referred to as gold futures. This aspects in levels of supply and demand based on current trends, in addition to geopolitical risks, and economic gauges, including inflation.
“With gold, you’re essentially speculating that the worth will go up long-term. Trying to find out that may be a little bit of a guessing game because we don’t know if demand will go up with time — it may very well be a short-term trend that changes,” says Devin Cattelan, a portfolio manager with Verecan Capital Management.
“Gold isn’t something that protected and stable as an investment since it does fluctuate over time.”
Historically, Ash says gold tends to do higher in additional uncertain and volatile economic times since it isn’t as exposed to economic risks, while stronger periods for the worldwide economy may encourage investors to buy stocks, real estate and other assets and drive the worth of gold down.
It’s because, in theory, gold will hold its value higher during economic downturns like a recession, or geopolitical events like a war — or a pandemic.
“The pandemic was a very popular period for gold. Gold really got here into its own as a store of value when the worldwide economy shut down,” Ash says.
Ash also says that although gold has been on a gradual rise over the past few many years, the recent spike in prices dates back mostly to last fall.
“The trade tariffs obviously have really spooked everybody,” Ash says.
Throughout the United States election in 2024, then-Republican candidate Donald Trump campaigned on using tariff policies to spur economic growth within the U.S.
In October 2024, gold was value roughly US$2,700.
Ash believes that after Trump won the election and have become president, investors prioritized buying gold due to the anticipated negative impacts of tariffs on global economies, which meant a rise in demand and rising prices.
In recent weeks, that volatility dialled up, and so too have prices for gold.
“What you’ve got in the intervening time is you’ve got fresh uncertainty around Trump’s policy towards China, and flip-flopping on his support for Ukraine. At the identical time, domestically with what’s happening with ICE and the National Guard, with John Bolton being arraigned, I feel quite a lot of persons are very spooked by all of this, so money managers, asset managers have made an actual return to gold,” Ash says.
But attempting to jump on the gold rush could include risks, experts caution.
“There have been quite a lot of individuals who advisable buying marijuana stocks when marijuana was becoming legal (in Canada). The industry took off, but then reversed course shortly after, and quite a lot of people lost quite a lot of money in that space,” Cattelan says.
“Time and time again, we see trends that emerge and evolve, and a few people can become profitable in the event that they get in and get out at the appropriate time. But there are quite a lot of individuals who lose money because they get in on the mistaken moment.”
Although gold as an investment appears to be a solid selection now, the gains is probably not sustainable and may change without notice, Ash says.
“It’s very difficult to see this current rate of acceleration continuing for much longer,” he says.
“I might suggest, don’t be rushed by the worth motion without delay. I feel it could be value taking a breath. FOMO isn’t reason to speculate.”
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