Gold Prices Slip. What Could Drive Up Demand for the Precious Metal.
Oct 30, 2025 06:30:00 -0400 by George Glover | #Precious Metals
Gold prices have struggled since Oct. 20, with investors deciding to sell the precious metal after a stellar run. (DAVID GRAY/AFP via Getty Images)
Key Points
- Gold futures decreased 0.4% to $3,986 an ounce, trading approximately 9% below its record high from earlier this month.
- Global demand for gold reached a record high in the third quarter due to increased buying from investors and central banks.
- The outlook for gold remains optimistic, supported by U.S. dollar weakness, lower interest-rate expectations, and stagflation concerns.
Gold prices were falling yet again on Thursday, as investors tried to figure out if a recent selloff was a mere dip, or the start of a longer decline.
The most actively-traded gold futures contract slipped 0.4% to $3,986 an ounce in early trading. It’s now trading about 9% off the record high it hit earlier this month.
The precious metal has struggled since Oct. 20, with investors deciding to sell after a stellar run that saw prices rally by over 50%.
Created with Highcharts 9.0.1Gold futures price per ounceSource: FactSet
Created with Highcharts 9.0.1Oct. 19Oct. 303,8503,9003,9504,0004,0504,1004,1504,2004,2504,3004,3504,400$4,450
The reversal has to stop sometime, though. And the good news for anyone still holding gold is that the conditions still look solid. The World Gold Council’s quarterly report, published on Thursday, showed that demand for bullion hit a record high over the third quarter thanks to a continued buying spree from investors and central banks.
“The outlook for gold remains optimistic, as continued US dollar weakness, lower interest rate expectations, and the threat of stagflation could further propel investment demand,” WGC analyst Louise Street said. “Gold has set record after record this year, and the current environment suggests there could be more upside gains.”
Gold-mining stocks were edging higher on Thursday. Newmont shares climbed 0.4%, while Franco-Nevada and Wheaton Precious Metals were both trading in the green.
Write to George Glover at george.glover@dowjones.com