Investors overhaul portfolios as gold joins the core

For nearly two years, gold has done what few assets have managed, which is stay glued above its 200-day moving average, a line most traders treat like a sanity test for markets.

That’s an unusual record in the metal’s trading history and a sign that investors aren’t backing away from it anytime soon. The rally hasn’t cooled either.

Spot gold has now rallied for nine consecutive weeks, something that’s happened only five times in the past fifty years.

From October 1975 to October 2025, there have been 2,601 rolling nine-week periods, and in just 0.19% of them, gold managed a winning streak like this. In each of the four previous cases, the metal kept rising in the months that followed, one month later, three months, six, twelve, and even two years later.

The setup looks familiar to those who’ve watched the market before. Lax fiscal and monetary policies around the world, and even political interference in central bank independence, have stoked fears of inflation that keep dragging real interest rates lower.

Add in Trump’s White House openly pushing for a weaker dollar, and you’ve got a backdrop where a zero-yielding asset like gold suddenly looks like a stronger bet than most government paper. Still, deciding whether gold has gone “too far” remains a guessing game.

There’s no formula for its true value. Stocks have earnings, bonds have yields, but gold doesn’t have either. Yet the metal has more than doubled in five years and climbed over 250% in the last decade. That’s made the question “how high is too high?” harder than ever to answer.

Investors overhaul portfolios as gold joins the core

The old 60/40 portfolio, stocks and bonds, has lost its shine. Traders and analysts are turning toward a 60/20/20 model, where alternatives like gold and crypto take up a bigger role.

The thing is, bonds don’t hedge like they used to. Inflation, government debt, and geopolitical risk have both asset classes moving in the same direction too often. “We are seeing greater adoption of non-equity, non-fixed-income products,” said Todd Rosenbluth, head of research at VettaFi.

The metal recently hit an all-time high above $4,300, up more than 60% since January, pushed by central bank buying, de-dollarization, and what traders are calling “the debasement trade.”

Steve Schoffstall, director of ETF product management at Sprott, explained that shift on ETF Edge: “What’s really happening now is a shift into the acceptance of gold.” He added that many economists now favor the 60/20/20 structure instead of 60/40, while also saying, “Most people are probably well positioned if they have a 5%-15% allocation to physical gold.”

Gold funds see record inflows as demand keeps building

The rally has been matched by surging ETF inflows. The SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) are both up around 11% this month, and the momentum goes back to early 2025.

The World Gold Council said that September brought the largest monthly inflows ever for gold ETFs, totaling nearly $11 billion. GLD alone pulled in $4 billion, and by mid-October, it added another $1.3 billion, data from ETFAction.com shows.

This year’s total movement into gold funds has already topped $38 billion, Sprott confirmed. That level of capital reallocation underscores how investors are repositioning toward hard assets amid fiscal uncertainty and volatile fiat markets.

For now, the numbers say it all, two years above the 200-day average, nine weeks of straight gains, and billions flowing into gold-backed funds. Whatever comes next, gold has proven it’s not just holding the line. It’s rewriting what “stability” looks like in a market that no longer trusts anything that prints.

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