Although gold has fallen about 6% from its record of nearly $4,360/ounce last month, the sell-off of the metal is still significantly lighter than Bitcoin. The digital currency is testing the support zone of 85,000 USD/token, down 31% compared to the recent peak.
Gold does not necessarily benefit when the stock market is pressured by the decline led by technology groups, or when cryptocurrencies weaken, Suki Cooper - Director of Global Commodity Research at Standard Chartered, commented in the latest report. C recorded calls could put pressure on gold in the short term if the stock market continues to fall.
Gold also struggled to attract new buying power due to increased uncertainty surrounding the monetary policy of the US Federal Reserve (FED). Cooper said Standard Chartered expects the Fed to keep interest rates unchanged at its meeting next month.
The minutes of the Fed meeting showed strong reluctance to cut interest rates, while the November employment data was delayed until after the meeting, she said.
Despite the rising risk of gold falling, Cooper said the fall was still limited by strong and diverse investment demand. The price increase to record levels in October was driven by unprecedented demand for gold-based ETP products. Although capital flows into ETP have slowed, Cooper noted that the physical gold market has not weakened as expected in the context of record prices.
She also said that the universe of gold investors is expanding, showing greater potential for demand in the future.
Large-time gold investors began to reduce their holdings after the pandemic in the second quarter of 2021, making ETP flows more flexible. However, this time, long-standing ETP holders - including pension funds - continue to increase their gold holdings in the third quarter of 2025, although holding levels are still below the old peak.
Notably, the "investment consulting" group, including somefamily offices, also continued to expand in the third quarter. The resilience of new holdings has not been verified, but according to records, many new investors have not yet allocated enough compared to the target" - she said.
Cooper also said that trade flows show that investors are more comfortable with gold prices above $4,000/ounce.
The largest gold ETP counterfeit sold volume fell sharply (36%) in the last two weeks of October compared to mid-month, to its lowest level since February. The volume of counterfeit sales decreased when prices fell from a record level, showing that the market is increasingly comfortable with prices consolidating within the current range.
The fluctuations implied for one month are still unchanged; although it has decreased compared to the recent increase, this level is still equivalent to the April period. Meanwhile, the monthly buying and selling rate also cooled down from its highest level since June, but still leaning strongly towards buying rights" - she commented.
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