In this episode of Unearthed, hosts John Reade and Joseph Cavatoni, Senior Market Strategists at the World Gold Council, discuss the recent developments in the gold market, including price movements, the impact of political events in Washington, and predictions for the end of 2025.
Last week marked the end of the longest US government shutdown, while economic updates from major economies painted a mixed picture. Meanwhile, expectations for further Fed rate cuts waned after hawkish comments from officials.
Last week’s economic updates highlighted uneven global momentum. US consumer sentiment dipped close to record lows, and European central banks kept rates steady. China’s exports fell and Japan’s manufacturing slowed, whereas India’s manufacturing gained pace.
Gold reached another historic milestone on 8 October 2025 as it broke through US$4,000/oz. And while it finished the week below the record high, it’s en route to mark its strongest performance in a calendar year since 1979.
Investors need to be cautious of the risks of relying too heavily on historic correlations that are prone to change. When the bond-equity correlation flips from negative to positive, a larger allocation to gold is required to retain the initial level of portfolio risk.
