Spot gold is nearing its late 2025 high as geopolitics and Fed rate easing are in focus
Gold’s powerful rally is reshaping how American households think about risk, safety and diversification, with new data showing that investors are buying precious metals at a pace once associated mainly with central banks and hedge funds.
A recent national survey of 2,000 US adults of age 35 to 64 found that 38.6% bought gold or silver as an investment in the past 12 months. The Gold IRA Guide survey reported that 91.7% of those buyers are equally or more likely to purchase again over the next year, signaling that this is not just a one‑off defensive move, but the start of a more durable allocation trend.
Spot gold traded around $4,485 an ounce by late Tuesday, extending gains after a nearly 3% jump in the previous session and moving closer to the record high of $4,549.71 set in late December. The metal posted a 64% gain last year, propelled by geopolitical flashpoints and the Fed’s rate‑easing cycle.
Gold has logged more than 50 all‑time highs and returned over 60% during 2025, according to the World Gold Council. Analysts at Morgan Stanley have projected that prices could climb toward $4,800 by the fourth quarter of this year, citing falling interest rates, changes in Federal Reserve leadership and continued central bank and fund purchases.
With traders currently pricing in two Fed rate cuts this year, the opportunity cost of holding non‑yielding gold is shrinking further, bolstering its appeal as both a hedge and a momentum trade.
From official vaults to household balance sheets
Once the preserve of central banks and institutional investors, gold ownership is spreading more widely among Americans in their prime earning and saving years.
The survey of investors ages 35 to 64 found that buying activity varied significantly by demographic, with millennials (35 to 44) showing the highest participation rate among age groups. This cohort, shaped by the 2008 financial crisis, the pandemic shock and a burst of post‑pandemic inflation, is increasingly treating gold and silver as a complement to traditional stock‑and‑bond portfolios.
For some, metals function as an inflation hedge while others see it as protection against political or geopolitical shocks. The recent US capture of Venezuela’s president, which has fueled global tensions and helped lift safe‑haven demand for bullion, highlights how quickly geopolitical headlines can ripple through markets.
Beyond coins and bars stored in home safes, digitized platforms - from vaulted products and online dealers to precious metals IRAs - have lowered barriers and made it easier to add exposure in smaller, recurring increments.
The retail surge is unfolding alongside sustained demand from the official sector with the National Bank of Poland remained the largest reported central bank buyer year‑to‑date through November with 95 tonnes, almost double Kazakhstan’s 49 tonnes, according to the World Gold Council. While the pace of reported net purchases through November has been slower than in recent years, buying momentum remains relatively robust.
The Council notes that central banks have continued their buying spree, with demand well above average even if below the records set in the previous three years. Their rationale - gold’s performance in times of crisis, its role as a store of value and its diversification benefits - is increasingly echoed by wealthy individuals.
When retail investors see the same asset favored by monetary authorities as a reserve diversifier, it reinforces the perception that gold is a strategic holding rather than a fringe speculation.
A new brief for wealth advisors
The Gold IRA Guide’s survey found that most recent buyers plan to purchase again in 2026, which suggests that precious metals exposure is becoming a recurring choice rather than an emergency reaction.
On one side, advisors can move clients from ad‑hoc buying to a defined allocation framework, specifying target ranges for gold within diversified portfolios and choosing vehicles that fit client circumstances. On the other, they must temper expectations after a period in which gold has delivered outsized gains.
For now, the combination of rising prices, resilient central‑bank buying and strong retail intentions among Americans in their peak saving years suggests that gold’s place in household portfolios is expanding. The task for wealth professionals is to channel that enthusiasm into disciplined strategies—before clients’ gold positions are dictated more by headlines than by financial plans.
