Gold gold gold in the news8 Oct 2025 23:25
While institutional investors and central banks have been driving the gold rally, experts say it is now being turbocharged by retail investors jumping on the bandwagon for ‘fear of missing out’ – or FOMO.
Luca Paolini, chief strategist at Pictet Asset Management, has described it as ‘gold-plated FOMO’.
The rise has been spurred on by a weakening dollar, hit by Donald Trump’s trade war and concerns about the US economy, as well as geopolitical tensions and anxiety over inflation and government debt.
The US government shutdown, which is now in its second week, has also added to investor nerves and sent them rushing for the yellow metal.
Investors traditionally view gold as providing protection from wider turbulence and high inflation. The price has also been boosted by the prospect of lower interest rates, which reduce returns on other investments making gold look more attractive.
BestBrokers said central banks worldwide have been stockpiling gold in response to the rally, with global gold reserves rising to an unprecedented £3.48 trillion in October so far, up 37.5 per cent from the end of 2024.
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The US remains the world's largest gold holder with 8,133 tonnes, now valued at $1.04 trillion dollars (£776 billion), marking the first time any nation's reserves have surpassed the one trillion US dollar threshold.
Ewa Manthey, commodities strategist at ING, said: ‘Gold has staged a historic rally, doubling in less than two years, spurred by central bank buying as it diversifies away from the US dollar, President Donald Trump's aggressive trade policy and conflicts in the Middle East and Ukraine.’
She added: ‘Markets are pricing in a quarter-point US rate cut this month, which would further benefit gold, as it doesn't pay interest.
‘Policy uncertainty and growing bets on Federal Reserve easing are keeping safe-haven demand strong.’
Ahmad Assiri, a research strategist at Pepperstone, said the rush for gold was set to continue for some time yet.
He said: ‘Gold's message is clear - in a world where the gap between valuations and policy credibility continues to widen, gold remains the timeless asset that bridges enduring value with a renewed relevance.’