2025-10-07
The short answer is yes, as momentum and macro signals are tilting toward more upside. But as always, gold's path will depend strongly on real yields, dollar strength, ETF demand, central bank buying, and geopolitical shocks.
As reported by Reuters, spot gold surpassed $3,900 / oz for the first time on October 6, 2025, hitting $3,944.63 before closing around $3,925.91. This rally is fueled by safe-haven flows, aggressive ETF inflows, and renewed expectations of Fed easing. [1]
But will gold continue climbing in the coming days and weeks? Below is an expert outlook, risks, and trading checklist.
In early October 2025, gold lit up the headlines: spot gold traded near $3,950 / oz, marking successive all-time highs as investors piled into bullion. Several concurrent forces explain the move:
Markets have priced further Federal Reserve rate cuts in the coming months; lower policy rates reduce the opportunity cost of holding non-yielding assets such as gold.
Recent market analysis and commentary suggest that the Fed is expected to cut rates again, which is likely to support the metal.
In the first half of 2025, global physically backed gold ETFs saw an addition of 397 metric tons, which corresponds to nearly $38 billion in inflows.
The World Gold Council also reports that by August 2025, ETF holdings climbed by 23 tonnes, pushing AUM to US$386 billion. [2]
Real 10-year yields, a key inverse driver of gold, have fallen from earlier 2025 highs, making gold more attractive. When real yields decline or go negative, gold typically rallies.
FRED and Treasury data also show real yields trending lower through summer and autumn 2025.
Political shocks in Europe, persistent conflicts and broader uncertainty (Middle East, Ukraine) increase safe-haven demand for bullion, pushing prices higher.
Reuters and other outlets flagged recent geopolitical events as amplifiers of safe-haven flows into gold.
While forecasts vary, the common thread among major banks and media coverage is that if ETF flows and Fed easing persist, gold's upside remains intact.
Institution | Outlook / Target | Timeframe / Notes |
---|---|---|
Goldman Sachs | Raised December 2026 target to $4,900 / oz (from $4,300) [3] | Long term and shows confidence in structural demand |
J.P. Morgan Research | Predicts average $3,675 / oz by Q4 2025 and a rise toward $4,000 / oz in 2026 | More moderate near-term baseline |
Reuters / Market Commentary | Spot gold reached new highs amid safe haven demand, expected to retain elevated levels if macro conditions persist | General market consensus |
Moreover, UBS upgraded its target to near $3,800 by year-end, reflecting expected Fed easing and dollar dynamics.
Additionally, if you want to know whether gold will keep rising in the coming days, watch these five high-impact items very closely:
Factor | What to Watch | Why It Matters |
---|---|---|
Real Yields | Further drop in 10-year TIPS yields | Creates more room for gold to rally |
DXY (Dollar Index) | Any sharp dollar bounce or reversal | A strong USD can weigh heavily on gold |
ETF Flows & Holdings | Weekly inflows/outflows in GLD, IAU etc. | Real, physical demand or withdrawals pivot sentiment |
Fed Signals & Futures | Shifts in language or rate expectations | Can change cost-of-carry dynamics |
Geopolitical/Risk Events | Unanticipated conflict, fiscal shocks, etc. | Drives safe-haven and hedging demand |
If most of these remain favourable, gold's upside in the near term remains intact.
A surprise inflation print or strong payrolls that push back on Fed cuts could lift the dollar and real yields, pressuring gold.
If macro sentiment normalises and short-term speculators sell, ETFs could see net outflows, removing a key demand pillar.
Extended overbought conditions can prompt quick, sharp retracements (gold is volatile during fast rallies).
If some central banks pause buying or disclose reductions, the market could recalibrate.
Each of these can trigger short-term declines even in an intact medium-term bullish story; that's why traders use tight risk controls.
Trade the volatility with tight risk limits. Prefer reversion trades near intraday support if macro indicators weaken. Utilise limit orders and steer clear of market orders in low liquidity situations.
If you prefer momentum trades, require confirmation from ETF flow data and real yield drops before chasing breakouts.
Use a macro filter: only add on dips if Fed cut odds increase or real yields decline. Consider small positions in gold ETFs (GLD, IAU) and scale with confirmation.
Keep stop losses below important technical supports (e.g., $3,700).
View gold as a protective asset: distribute according to portfolio insurance requirements (typically 2–10% based on risk appetite). Physical, ETF, and miners offer different exposures and costs.
Watch central bank and ETF flows for signs of structural demand shifts rather than short-term noise.
Momentum is supportive, but volatility is high. It is best to enter with caution and proper risk management.
Yes, many analysts and technical setups see $4,000 as the next milestone if flows and easing continue.
Yes. Central bank gold buying remains a key structural driver for demand in 2025.
In conclusion, gold's momentum in early October 2025 is real, but it's not immune to sudden reversals.
With falling real yields, strong ETF inflows, and persistent geopolitical risks, gold has a favourable near-term setup. But surprises can challenge the streak. For long-term investors, gold is better viewed as strategic hedging, not a pure return generator.
Key takeaway: Unless the Fed turns hawkish again or central flows reverse, gold's trajectory toward $4,000+ remains in play.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
[2] https://www.gold.org/goldhub/research/etf-flows
[3] https://www.reuters.com/business/goldman-hikes-december-2026-gold-price-forecast-4900oz-2025-10-07/