Gold futures (GC=F) are making headlines, notching their biggest weekly gain since 2020 in a truly stunning rally. Though the precious metal eased on Friday, declining more than 1% to near $4,260 after hitting an intraday high north of $4,380, the weekly performance was spectacular.
The “yellow metal” soared by 7% over the past week, with one analyst describing the price action as “parabolic in a perfect storm.”
What’s Fueling the Gold Rush?
This massive jump in prices is being driven by a confluence of significant factors:
- Geopolitical Stress: Ongoing trade tensions, specifically between the US and China.
- Monetary Policy Expectations: Anticipation of another rate cut from the Federal Reserve next week. Lower rates make non-yielding assets like gold more attractive.
- Credit Worries: Concerns stemming from regional bank woes and overall credit health.
Kyle Rodda, a senior financial market analyst, suggests gold is sending an “ominous message,” signaling either “huge geopolitical or overheating of the global economy in the future,” or perhaps “speculative excess” that is bound to correct.
Key Market Data & Future Outlook
The rally has been building steam all year:
- Year-to-Date Performance: Gold futures are up roughly 59% in 2025.
- Core Drivers: Strong central bank buying, a weaker dollar, and anticipated rate cuts.
- ETF Inflows: Inflows into gold-backed ETFs reached their highest levels ever last quarter.
- Crowded Trade: The recent BofA Fund Managers survey noted that long gold was the No. 1 most crowded trade in October, surpassing the “long Magnificent Seven” stocks.
Analyst Price Targets:
Wall Street is raising the bar with aggressive long-term forecasts:
| Institution | Recommendation | Price Target | Timeline |
| BofA | Long Gold | $6,000 per ounce | Mid-2026 |
| Goldman Sachs | – | $4,900 per troy ounce | End of next year |
| JPMorgan | – | $6,000 per ounce | By 2029 |
Would you like to know more about the factors driving gold’s performance, or look into the impact of the Federal Reserve’s expected rate cut?
