Why Gold’s Shining Brighter in 2025

Brew

| Oct 2025

WHAT’S DRIVING THE PRICE OF GOLD IN 2025?

Gold has moved sharply higher this year. What’s behind the move isn’t a single story, but a convergence of forces taking place under the hood. Let’s take a closer look.

Gold behaves less like an industrial commodity and more like a store of value that investors reach for when conviction, and uncertainty, runs high. Prices are driven by owners who are willing to hold it without cash flows, while steady buying in key markets can provide support on dips.

What’s fueling recent strength:

Central bank buying: Many central banks are diversifying reserves, holding more gold relative to U.S. dollars than at any point in modern history.
China ETF flows: Household investment demand in China has surged, with growing allocations to gold ETFs as investors hedge currency depreciation and domestic equity weakness.
Physical demand in Asia: Jewelry and bullion buying remain robust in both China and India, supported by cultural affinity and inflation concerns.
Macro uncertainty: Rising U.S. business and policy uncertainty (deficits, gridlock, and geopolitical risks) has lifted demand for perceived safe-haven assets.
Fed easing cycle: Gold typically does well during Fed easing cycles, an environment we’re currently in

How we think about it in portfolios: gold is not a precision hedge for month-to-month inflation, and it can be volatile. Its value is as a diversifier and potential insurance during regime shifts when traditional assets may be under pressure. Whether or not gold makes sense for an individual investor depends on many considerations outside the scope of this article.

Bottom line: Gold’s move is the product of macro uncertainty, reserve diversification, and persistent demand, not a one-factor story. While gold has been a helpful diversifier over the course of history, there are other diversifying assets that have not appreciated as much recently and may offer more attractive opportunities. We’re watching these developments closely and will continue to position portfolios with balance and discipline. If you’d like, we can review your allocation and discuss whether any adjustments, across gold and other diversifiers, make sense for your goals and time horizon. Please get in touch with your advisor to learn more.

MARKET BACKDROP

ASSET CLASS SUMMARY
As of 10/29/2025

Asset Class	1 Month	3 Month	YTD	1 Year	3 Year	5 Year	10 Year
U.S. Stock	+3.16%	+8.27%	+17.62%	+19.09%	+21.75%	+16.58%	+14.11%
Global Ex U.S.	+3.72%	+9.51%	+30.58%	+25.29%	+21.40%	+11.80%	+8.36%
U.S. Bond	+0.82%	+2.95%	+7.04%	+6.28%	+5.54%	-0.20%	+1.93%
Global Bond	+0.44%	+2.03%	+8.27%	+6.38%	+5.58%	-1.52%	+1.20%
U.S. Real Estate	-2.69%	-3.09%	+2.95%	-2.88%	+6.99%	+6.80%	+5.74%

SECTOR SUMMARY
As of 10/29/2025

Cyclical	1 Month	3 Month	YTD	1 Year	3 Year	5 Year	10 Year
Consumer Cyclical	+0.38%	+6.70%	+6.29%	+21.12%	+20.58%	+10.75%	+12.90%
Financials	-3.75%	-0.96%	+8.99%	+12.78%	+17.14%	+19.17%	+12.39%
Materials	-2.70%	-2.78%	+5.76%	-5.13%	+7.57%	+8.89%	+9.09%
Real Estate¹	-2.87%	-3.85%	+2.66%	-3.60%	+7.21%	+7.15%	+6.45%

Sensitive	1 Month	3 Month	YTD	1 Year	3 Year	5 Year	10 Year
Comm. Services	+3.92%	+16.75%	+30.00%	+37.93%	+40.11%	+18.34%	+13.86%
Energy	-2.16%	+0.15%	+5.86%	+3.24%	+2.98%	+30.58%	+6.97%
Industrials	+1.32%	+1.97%	+18.98%	+16.19%	+19.86%	+17.25%	+12.83%
Technology	+9.02%	+16.47%	+32.21%	+33.17%	+39.80%	+25.92%	+24.82%

Defensive	1 Month	3 Month	YTD	1 Year	3 Year	5 Year	10 Year
Consumer Defensive	-1.59%	-3.36%	+1.94%	+1.06%	+6.54%	+8.62%	+8.02%
Health Care	+5.98%	+7.67%	+6.14%	-1.17%	+4.51%	+9.02%	+9.15%
Utilities	+3.50%	+7.25%	+21.55%	+16.99%	+13.71%	+10.86%	+11.18%

Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio. Market segment (index representation) as follows: Consumer Cyclical (S&P 500 Consumer Discretionary (Sector) Total Return), Financials (S&P 500 Financials (Sector) Total Return), Materials (S&P 500 Materials (Sector) Total Return), Real Estate (S&P 500 Real Estate (Sector) Total Return¹), Comm. Services (S&P 500 Communication Services (Sector) Total Return), Energy (S&P 500 Energy (Sector) Total Return), Industrials (S&P 500 Industrials (Sector) Total Return), Technology (S&P 500 Information Technology (Sector) Total Return), Consumer Defensive (S&P 500 Consumer Staples (Sector) Total Return), Health Care (S&P 500 Health Care (Sector) Total Return), Utilities (S&P 500 Utilities (Sector) Total Return).

1) The index Launch Date is Sep 19, 2016. All information for an index prior to its Launch Date is hypothetical back-tested, not actual performance, based on the index methodology in effect on the Launch Date. Back-tested performance reflects application of an index methodology and selection of index constituents with the benefit of hindsight and knowledge of factors that may have positively affected its performance, cannot account for all financial risk that may affect results and may be considered to reflect survivor/look ahead bias. Actual returns may differ significantly from, and be lower than, back-tested returns. Past performance is not an indication or guarantee of future results. This back-tested data may have been created using a “Backward Data Assumption”. For more information on “Backward Data Assumption” and back-testing in general, please see the Performance Disclosure.

This article is for informational purposes only and is not intended as individual investment advice or as a recommendation of any particular security, strategy or investment product. Investing involves risk including the potential loss of principal. SEIA is not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas. Past performance is not indicative of future results. Signature Investment Advisors, LLC (SIA) is an SEC-registered investment adviser; however, such registration does not imply a certain level of skill or training and no inference to the contrary should be made. Securities offered through Signature Estate Securities, LLC member FINRA/SIPC. Investment advisory services offered through SIA, LLC, 2121 Avenue of the Stars, Suite 1600, Los Angeles, CA 90067, (310) 712-2323. The information provided in this article is for general informational purposes only and does not constitute professional advice. Individual results may vary, and it is important to consult with a qualified professional before making any financial or legal decisions. For details on the professional designations displayed herein, including descriptions, minimum requirements, and ongoing education requirements, please visit seia.com/disclosures. SIA does not accept time-sensitive, action‐oriented messages or transaction orders, including orders to purchase or sell securities, via electronic mail.

Why Gold’s Shining Brighter in 2025

Categories

Archives

The Brew: Key Tax Shift Ahead for Roth Conversions

The Brew: Is AI the Next Bubble?

Maximizing Your Charitable Deductions Before 2026

Why Gold’s Shining Brighter in 2025

Categories

Archives

Related News

The Brew: Key Tax Shift Ahead for Roth Conversions

The Brew: Is AI the Next Bubble?

Maximizing Your Charitable Deductions Before 2026