Crisis Currency or Costly Hype, Analysing the Buy Signal as Gold Hits ‘Ultimate’ Status

Crisis Currency or Costly Hype: Gold’s price is still rising, and in recent weeks, the shiny metal has once again drawn the attention of investors worldwide. However, what is driving this current “gold rush”? Since the epidemic, gold’s value has increased, particularly in the last several months, when it has repeatedly established new records.

The primary gold futures price initially surpassed US$4,000 per ounce on October 7 and peaked on October 20 at around $4,380. At the time of publishing, the cost was around $4,130.

Gold Futures Surge: Crisis Currency or Costly Hype

The value of gold futures has increased by around 60% so far in 2025, which may make some people question if the moment is right to purchase.

“A gold rush of sorts is going on right now. Along with other precious metals like silver and platinum, gold is by far the best-performing asset class of the year in the autumn of 2025, according to Adrian Ash, head of research at BullionVault, a marketplace that buys and sells gold.

In order to maintain its worth, a tangible lump of rare precious metal serves as currency that is independent of governmental existence, regimes, jurisdictions, and legal stability and continuity.

“We are looking at a real kind of ”crisis’-sized move into gold by investors in recent weeks,” Ash continues, adding that gold is “the ultimate currency in a crisis.” What is now driving the value, then?

Why is there a fresh ‘gold rush’?

One of the primary forces influencing the price of gold is supply and demand; the more purchasers want to acquire the metal for any given reason, the higher the price of the metal rises.

The price that gold is predicted to reach in the next months, or gold futures, is the most common way to determine its worth. This takes into account supply and demand levels according to current trends, geopolitical threats, and economic indicators like inflation.

“You’re basically betting that the price of gold will increase over time. Devin Cattelan, a portfolio manager at Verecan Capital Management, says, “We don’t know if demand will go up with time—it could be a short-term trend that changes.” Determining that is something of a guessing game.

“Because gold fluctuates over time, it isn’t a very safe and stable investment.” According to Ash, gold has historically performed better during periods of economic uncertainty and volatility because it is less vulnerable to economic concerns. Conversely, during times of global economic strength, investors may be more inclined to buy stocks, real estate, and other assets, which might lower the value of gold.

This is because gold should theoretically keep its value better amid geopolitical disasters like war or a pandemic or during economic downturns like recessions.

“Gold was particularly popular during the epidemic. When the world economy collapsed, gold really took off as a store of wealth, according to Ash.

According to Ash, the latest surge in gold prices mostly stems from last autumn, despite the metal’s consistent increase over the previous several decades. “It is clear that the trade tariffs have frightened everyone,” Ash adds.

Then-Republican candidate Donald Trump ran on a platform of enacting tariffs to boost the American economy during the 2024 election.

Gold was valued around US$2,700 in October 2024.

Ash thinks that investors prioritized purchasing gold after Trump was elected president due to the expected detrimental effects of tariffs on world economies, which resulted in a rise in demand and price increases.

Both that volatility and the price of gold have increased in recent weeks.

“What you have right now is new ambiguity around Trump’s stance on China and his vacillating support for Ukraine. At the same time, Ash adds, “I think a lot of people are very spooked by all of this domestically with what’s happening with ICE and the National Guard, with John Bolton being arraigned.” As a result, money managers and asset managers have made a significant comeback to gold.

However, experts warn that there may be hazards involved in attempting to profit from the gold rush.

When marijuana was legalized (in Canada), several individuals advised purchasing stocks in the drug. Many individuals lost a lot of money in that sector as the business went off and then quickly changed its direction, according to Cattelan.

We often see trends that develop and change, and some individuals may profit if they enter and exit at the appropriate times. However, many individuals lose money because they enter at the incorrect time.

According to Ash, although gold seems like a good investment right now, the profits could not be long-lasting and might fluctuate at any time.

He claims that it is quite unlikely that the present pace of acceleration will continue for very long. “I would advise not being hurried by the current price activity. I believe it would be beneficial to take a breath. FOMO is not a valid justification for investing.