InvestingTrends

In periods of economic instability, investors traditionally seek safe assets, and gold remains their favorite. Unlike Bitcoin, gold has a centuries-old history as a stable store of value. Its physical nature and limited supply provide trust, especially when markets are shaken by geopolitical crises or inflation. $BTC , although considered "digital gold," remains volatile and is viewed as a speculative asset due to regulatory risks and the instability of the crypto market.

By @MrJangKen • ID: 766881381 • 19 October 2025
Gold futures are on a historic run, posting their largest weekly gain since 2020 as investors flock to the precious metal amid a perfect storm of economic and geopolitical uncertainty. After a brief pullback on Friday, gold remains near $4,260 per ounce, having soared to intraday highs above $4,380 earlier in the session. Over the past week, the yellow metal has surged approximately 7%, signaling what analysts are calling a “parabolic” rally.

According to Kyle Rodda, senior financial market analyst at capital.com, “Gold has gone parabolic in a perfect storm for the yellow metal.” Multiple factors are driving the surge, including escalating trade tensions between the United States and China, expectations of an imminent Federal Reserve rate cut, and growing credit concerns following regional banking turbulence.
“Gold is sending an ominous message about the future,” Rodda added. “It may suggest looming geopolitical crises, signs of global economic overheating, or, alternatively, speculative excess that could eventually unwind.”
The yellow metal’s meteoric rise is underpinned by strong central bank purchases, a weakening U.S. dollar, and falling interest rates, all of which make bullion an attractive store of value. Year-to-date, gold has jumped roughly 59%, outpacing many traditional investment avenues.
Investor demand is also evident in the surge of inflows into gold-backed ETFs, which reached record levels last quarter. The Bank of America (BofA) Fund Managers survey underscores this trend, naming gold the most crowded trade in October—surpassing even the “long Magnificent Seven” tech stocks. While 39% of surveyed fund managers report minimal exposure to gold, nearly 35% have allocations ranging from 2% to 4%, signaling growing interest in the yellow metal as a hedge against volatility.
Wall Street’s outlook on gold remains bullish. Analysts at BofA reiterated their “long gold” stance, projecting a peak price of $6,000 per ounce by mid-2026. Goldman Sachs has also raised its price target to $4,900 per ounce by the end of next year, up from a previous forecast of $4,300. Meanwhile, JPMorgan analysts foresee the possibility of gold reaching $6,000 per ounce by 2029, reflecting confidence in the metal’s long-term resilience amid ongoing macroeconomic risks.
As investors seek safe-haven assets amid economic and geopolitical uncertainty, gold’s dramatic surge underscores its enduring role as a global hedge. While some caution that the parabolic rally may indicate speculative excess, the current momentum suggests that gold will continue to dominate investor attention in the months and years ahead.
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