Gold's surge into the $4,000s highlights powerful demand drivers, supply limits, and why the metal remains both compelling and volatile.

The bull case depends on why you own gold and how you choose to hold it. The "what" and "how" matter as much as the "whether."

Investors buy gold not because they expect a return from it, but rather because they expect other investors to want to pay more for it in the future.

The real problem with gold is that these arguments work at almost any price. If you are buying gold because you expect central banks to buy gold then it doesn't really matter whether the price is $3,000 or $30,000.

Gold is especially jumpy when narratives collide. And at the moment the narratives are mostly all heading in the upward direction. Inflation scares, geopolitical shocks, currency swings, and central bank headlines all land in the price at once.

Author's summary: Gold price driven by demand and supply.

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Livewire Markets — 2025-11-01