Gold Reaches Most Overbought Level in 45 Years as ETF Demand Spikes
Gold just hit its most extreme overbought territory since the disco era—and ETF investors are loading up like there's no tomorrow.
The 45-Year High
Gold's surge pushes it into uncharted momentum territory. ETF inflows spike as traditional investors scramble for safe havens. The metal's rally defies conventional market wisdom—and historical patterns.
ETF Frenzy Explained
Exchange-traded funds see record gold purchases. Institutional money floods into precious metal ETFs. Retail investors follow the institutional lead, creating a self-reinforcing cycle.
Market Mechanics Breakdown
The gold rush bypasses typical resistance levels. Technical indicators flash extreme overbought signals. Trading volumes smash previous records across global exchanges.
Traditional finance veterans scratch their heads while gold bugs celebrate—proving once again that when fear meets FOMO, even 45-year records get shattered. Because nothing says 'stable investment' like chasing all-time highs in the most overbought market since bell-bottoms were fashionable.
Traders rush into ETFs as gold keeps climbing
On Friday, gold-backed ETFs added 27 tonnes in a single day. That’s the biggest spike since January 2022 and more than double the daily average this year. It triggered a 0.9% surge in ETF holdings, the biggest one-day jump in over two years. Bloomberg says those holdings have grown almost every month in 2025, except May, adding close to 400 tonnes total. Traders are going all in.
This push has lined gold up for its sixth straight weekly gain, the longest winning streak since February. It’s turning into a historic run. At the same time, silver’s moving too. The largest silver ETF, $SLV, saw daily options volume jump to 1.2 million shares on Friday. That’s the highest since April 2024. On Tuesday, silver touched $44 an ounce, while spot gold held steady at $3,760.70 as of 8:16 a.m. in Singapore. Platinum barely moved. Palladium ticked lower. But the real action’s all on the yellow metal.
Fed rate cuts and Trump’s NATO comments heat up the gold trade
The Federal Reserve cut rates by 25 basis points a week ago, dragging real yields down even further, as Cryptopolitan previously reported. Naturally, that has pushed even more investors into non-yielding assets like gold. Inflation’s still sticking around, fiscal deficits are rising, and tensions across Europe and the Middle East haven’t let up.
Central banks haven’t missed the party either. They’ve been stacking gold this year like their lives depend on it. That demand hasn’t let up, and it’s kept support under prices. Now, there’s even talk that gold could hit $5,000 by the end of the year. Traders are watching the U.S. personal consumption expenditures price index this week. That’s the Fed’s favorite inflation metric. If it slows down again, that could mean more cuts are coming, and more support for gold.
On the political front, President Donald Trump, speaking during a UN General Assembly meeting in New York, said NATO countries should shoot down Russian aircraft that violate their airspace. When asked whether Ukraine can still win the war, TRUMP said, “Yes, I do.” Those comments dropped straight into the middle of already tense global markets.
Meanwhile, the Bloomberg Dollar Spot Index stayed flat, giving no help to the greenback. That’s just one more reason traders are clinging to gold.
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