On the global financial market, interest in gold is once again rising, and this trend is clearly reflected in the performance of exchange-traded funds focused on precious metals. After a period of high volatility, investors began actively increasing their positions, viewing gold as a protective tool against potential economic and geopolitical shifts.

Restoring capital inflows

According to the World Gold Council, net inflows to gold-based ETFs significantly increased after the autumn correction, during which demand for precious metals temporarily declined. In October 2025, physically backed ETF funds added 54.9 tonnes of gold, which is equivalent to approximately $8.2 billion in new investments. This is attributed to the return of global market participants to capital preservation strategies and the use of gold as a stabilizing asset during periods of economic turbulence, when traditional income sources may weaken.

Notably, large funds focused on long-term metal ownership recorded not only major institutional purchases but also a noticeable rise in retail investor inflows, as individuals increasingly view gold as an alternative to deposits and bonds. Analysts highlight that investment levels have not yet reached early-autumn peaks, leaving ample room for further asset growth and the entry of new participants in an environment of persistent global uncertainty.

Growth drivers

Several key factors are influencing growing demand among both private and institutional investors, forming a stable foundation for the continuation of the upward trend and partially explaining adjustments in strategies of major funds and asset management companies. The main demand drivers include:

• expectations of further monetary policy easing;
• ongoing geopolitical and economic risks;
• desire to protect capital from inflation-driven fluctuations;
• increasing trading activity from major funds and state structures;
• sustained attractiveness of physical assets regardless of stock market dynamics.

The renewed focus on gold is driven not only by short-term fluctuations but also by a long-term risk assessment, which supports stable demand from strategic investors seeking diversification.

Market situation and investment sentiment

Gold prices managed to rebound after a temporary decline and approached upper levels recorded in October. Market participants note that the price correction appeared to be a technical move rather than a sign of changing fundamentals. At the same time, investor activity strengthened among those who had previously been observing the market and waiting for signals of trend reversal.

According to fund managers, the share of gold in investment portfolios remains below recommended levels for long-term strategies, which creates space for gradual allocation increases among major players. Expected risks and current cycle specifics include:
probability of short-term pullbacks during profit-taking;

• potential growth in competition with the stock market if the economy stabilizes;
• increasing share of short-term speculative activity;
• higher sensitivity of prices to large-scale transactions;
• influence of macroeconomic forecasts related to major global currencies;
• shifts in central bank strategies.

Despite these risks, many analysts believe that the gold market remains underinvested and may continue attracting capital over an extended period.

Analyst forecasts and potential scenario

Experts allow for further price appreciation if current demand levels remain stable and private as well as institutional interest continues to rise. In the short term, the market may remain within a trading range with potential attempts to reach new local highs, especially amid lower yields on government debt instruments, making gold a more appealing alternative.

In the medium term, gold may strengthen its status as a key defensive asset if the global economy encounters another cycle of uncertainty or slowing activity. Analysts also note that changes in portfolio allocation strategies may become a significant driver of growth, as gold transitions from a supplementary role to a strategic one, while large funds continue expanding their positions with a long-term value-preservation outlook.