08.10.25 - Shining gold
Gold is shining brighter than ever, trading above USD 4’000 per ounce for the first time in history. The move underscores renewed investor demand for tangible assets amid political gridlock and persistent uncertainty around fiscal policy.
The US government shutdown has entered its eighth day, with no sign of progress in Washington as lawmakers remain deadlocked over spending priorities.
Commodity markets are seeing broad strength: silver, platinum, copper, and palladium are all advancing, the recent weeks mainly driven by speculative trading in combination with fueled supply concerns and expectations of sustained demand from industrial and energy transition sectors.
Mining stocks are among the day’s outperformers, benefiting from the commodity tailwind.
Markets: remain resilient
US indices are hovering near record highs
Gold and metals are rising simultaneously
Bond yields are holding steady
US dollar strengthened
Volatility index (VIX) remains subdued
My View: Gold’s breakout above USD 4’000 marks a psychological turning point. Historically, such milestones often coincide with a broader shift in sentiment, from denial to acceptance that inflation and fiscal imbalances are here to stay. While AI and tech narratives continue to dominate equity headlines, the rally in real assets tells a parallel story: one of investors quietly hedging against long-term instability.
The combination of record equity prices, a stalled government, and surging gold is unusual, and not sustainable in the long run. Something will have to give.
Either growth catches up with valuations, or markets will face a reality check once fiscal and monetary limits are tested or in case earnings will disappoint. This could lead to a sharp shift in investor sentiment.
For now, ETFMandate portfolio is well positioned in the commodity sector with investments in global, gold and rare earth miners as well as direct exposure to commodities like gold, silver, copper and platinum.
After such a strong run, some profit taking could make sense should the up-trend stall.
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