09/25/2025
Gold is far from falling into a "speculative frenzy", and a shift in investment strategies may truly ignite the gold price!
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Gold prices continued to rise on Monday, approaching $3,800 per ounce. Strong demand and persistent economic uncertainty have further strengthened the safe-haven appeal of gold.
Although the gold price has approached a historical high, a key survey of institutional investors shows that the "speculative frenzy" has not yet formed - which means that the upward trend may still have room to rise.
Recent data from Bank of America's Global Fund manager survey highlights this cautious sentiment: 39% of fund managers said that the proportion of gold in their investment portfolios remains zero. Although this proportion has declined from 47% in August, it still indicates that gold has significant untapped investment potential.
Ryan Detrick, chief market strategist at Carson Research, commented on the survey results: "This data is surprising, but it also indicates that gold is far from entering the 'speculative frenzy' stage at present."
The support for the current rally in gold prices actually stems from the strong physical demand in key markets and the influx of "safe-haven funds". As the world's largest consumer of gold, China's non-monetary gold imports soared to 104 tons in July, far exceeding the five-year average.
Meanwhile, as the holiday season kicks off, gold demand in India is expected to rebound. Darshan Desai, the CEO of Aspect Bullion & Refinery, said: "With the arrival of Navratri, India, the domestic market is expected to witness a wave of buying."
He added, "The expected ongoing global economic uncertainties will provide sustained support for the gold price."
Other market experts also maintain a bullish stance, saying that there could be a major shift in investment strategies. James Turk, the founder of Goldmoney, has set a short-term target price of $4,000 per ounce for gold.
Economist Peter Schiff also agrees with this optimistic expectation. He points out that Morgan Stanley has adjusted its classic "60/40 portfolio" (typically 60% stocks and 40% bonds) to include gold - he believes this move is equivalent to giving a "sell" rating on "US Treasuries".
Currently, physical buyers and long-term strategists are driving gold prices higher, and the market is closely watching when a large amount of institutional funds will join this rally.
