Powerful gold FOMO is gripping the financial markets. Consequently, the precious metal is soaring to unprecedented heights. Analysts now project a stunning new price target. They see a strong likelihood of gold reaching $4,000 per ounce.
The rally shows absolutely no signs of stopping. Gold recently wrapped its seventh consecutive week of gains. It hit a fresh all-time high of $3,880.80 an ounce. This surge brings its yearly advance to an impressive 47%. Several key factors are fueling this relentless upward grind.
A State Street strategist made a bold prediction. Aakash Doshi leads the bank’s gold strategy. He told clients that $4,000 is now a matter of “when” not “if”. Doshi assigned a 75% probability to this event. He expects the breach in late 2025 or early 2026. This confident forecast intensifies the current gold FOMO.
Market uncertainty is a primary driver for this trend. A looming government shutdown creates investor anxiety. A weaker U.S. dollar also provides a significant boost. Furthermore, anticipated interest rate cuts are adding momentum. The Federal Reserve is expected to cut rates soon.
These rate cuts support gold through two main channels. First, they reduce the opportunity cost of holding gold. Gold is a non-yielding asset. Second, they could further weaken the U.S. dollar. The greenback is already facing its worst annual drop in decades. This dynamic makes gold cheaper for foreign buyers.
Simultaneously, exchange-traded funds are seeing massive inflows. Global gold ETF inflows are at their highest level since 2020. This is a critical indicator of institutional and retail demand. Surprisingly, total physical holdings remain below their pandemic peak. This fact suggests there is still ample scope for further buying.
ETF purchases can materially tighten gold’s supply and demand balance. They are a primary factor behind this year’s record prices. State Street’s SPDR Gold Trust is the largest physical gold ETF. It has recorded consistent weekly inflows throughout September.
Other gold-backed funds are also performing exceptionally well. ProShares Ultra Gold and DB Gold Double Long ETNs have both advanced over 90% this year. Sprott Physical Gold Trust and Franklin’s gold ETF are also up roughly 47%. These staggering returns undoubtedly fuel more gold FOMO among investors.
The combination of macroeconomic forces and strong fund flows creates a perfect storm. This environment encourages a fear-of-missing-out mentality. Therefore, the rally may still have considerable room to run. The path toward $4,000 appears increasingly plausible to market experts.
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