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Gold prices: The structural shifts that could influence rally

Published: Wednesday, October 8, 2025 · 7:20 PM  |  Updated: Wednesday, October 8, 2025 · 7:20 PM

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00:00 Josh

Well, gold continues its record-breaking rally. Senior market reporter Inez Ferre joining us here with the latest. Inez.

00:05 Inez

Yeah, that’s right, Josh. We are seeing gold at record highs again. It’s been making record after record. Uh we’ve seen record inflows uh over the last quarter into gold back ETFs. We’ve seen Central Bank buying, the Fed easing expect those expectations have sent gold higher and we’ve also seen a downtrend with respect to the dollar this year.

00:39 Inez

Uh and Wall Street is calling it this debasement trade, so to speak. Uh that’s uh where you see really mounting government debt all over the world really and then the way that governments get out of this is by printing money. And so, uh so that’s part of the trade why you’re seeing investors going into gold, other assets, digital gold, uh all-time high for stocks.

01:07 Inez

Uh but does this really mean that this is a swing away from the dollar? And that is um at the margin, you’ve had strategists that have been saying, yes, this is investors trying to sway get away from the dollar, Central banks trying to get away from the dollar. But the there’s there’s other things that are also at play here and that is if you see an allocation away from US Treasuries and into gold, if this is structured, if this is a structural change that is happening because you have some price targets out there from JP Morgan talked about this, I believe Goldman also talked about this.

01:50 Inez

Even if you see a small pivot away from US Treasuries, that could have an outsized impact on gold prices just because of the sheer size of the US Treasury market. So if you see investors, and there’s been a lot of questions about getting away from this uh the 40% allocation and bonds, maybe uh diversifying into gold, into other assets. So, if this is a structural change that is indeed happening that you see Central banks go going swaying away from Treasuries, investors swaying away from Treasuries, then you could also keep seeing gold rising in this scenario.

02:30 Josh

So, gold is dominating headlines right now for a good reason, it’s glittering. If I’m listening to this right now, let’s say I’m a gold investor, what are the risks I should be thinking about at least near term?

02:46 Inez

Well, I mean, the big risk is if you see an upside in the dollar, but mind you, keep in mind that in the last couple of days, we actually saw the dollar rising a bit and you still saw gold going higher. Uh but if you see a very meaningful rise in the dollar, then you could see a sell off in gold. Of course, anything a big catalyst that happens and you see a huge market sell off, you that could you could also see a sell off in gold in that scenario. If the geopolitical tensions, if you’ve got the war in Ukraine that ends, the Middle East tensions that end, that could also prompt a sell off in gold.

03:22 Inez

But in the long term, I mean, this does appear to be that there is a shift that is investors favoring gold as a sort of store in value. You really have to ask yourself, is it gold that’s going up or is it the value of your currency that’s going down?

03:41 Josh

How final question, how crowded is this trade at this point?

03:45 Inez

Uh, I mean, you’ve got strategists that are talking about that this is a crowded trade. I mean, this is overextended. You are looking at gold that’s up 55% year to date. Sean Farrell from Fundstrat has some interesting charts basically showing that when gold goes uh goes up, you see Bitcoin going down, but then when Bitcoin goes up, gold So, he believes that there may be a shift that starts happening where you go from analog gold, investors start going into digital gold in that respect.

04:16 Josh

All right, as, thank you. Appreciate it.

04:18 Inez

You’re welcome.

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