Gold Rally Tests Record Highs Amid Strong Institutional Demand
Gold prices surged to an all-time high above $4,380 an ounce in late October, fueled by robust ETF inflows and unwavering central bank acquisitions. Global Gold ETFs absorbed $26 billion in Q3—the largest quarterly influx this year—as investors sought refuge from volatile currency and bond markets.
Physical demand intensified across key markets, with Indian jewelry consumption rising 10% and Chinese retail investors aggressively accumulating bars and coins as a hedge against currency depreciation. Central banks in Asia and the Middle East maintained steady reserve accumulation, while ETF holdings rebounded sharply with 220 tonnes added after earlier outflows.
The rally defies elevated interest rates, underscoring gold's dual appeal as both a strategic reserve asset and retail SAFE haven. Market structure suggests sustained support, though technical indicators flash overbought signals after the parabolic move.
