New York, New York
— October 8, 2025

The price of gold is soaring, hitting record highs and showing no signs of slowing down. Since the rally began in early 2024, gold has been on a tear, with the SPDR Gold ETF (GLD) up nearly 50% year over year. For a traditionally stable asset like gold, that’s a staggering move.

So, what’s behind this historic surge? It’s not one thing, it’s a combination of global pressures that have created the perfect storm for gold to shine as a safe haven.

Here are the eight key factors driving the rally:

1. Ongoing wars in Ukraine and the Middle East
2. Persistent inflation fears
3. Trade tensions and tariff pressure
4. Record U.S. debt levels
5. Threats to Federal Reserve independence
6. A weakening U.S. dollar
7. Anticipated interest rate cuts
8. The recent U.S. government shutdown

Central banks have been leading the charge, buying up gold at record levels — now holding nearly 20% of all gold ever mined. Institutional and retail investors have followed suit, viewing gold as both a hedge and a diversification play. Gold-backed ETFs like GLD are now at their highest holdings in more than three years.

Interestingly, the gold-to-S&P 500 ratio sits at 0.6, below the 20-year average — a signal that might suggest either gold is undervalued or that equities are overheated.

At Wall Street Game Notes, we continue to like gold as a diversification tool within a balanced portfolio, especially given the current backdrop of uncertainty. But remember: gold’s stability comes from its long-term value, not short-term speculation.

Or as Warren Buffett famously said, “If you own one ounce of gold for an eternity, you still own one ounce at its end.”