This article first appeared on GuruFocus.
Gold (GLD) is grinding its way higher again, and the move could be telling investors something about where the market wants to go next. The metal has now risen for a second straight session, climbing as much as 0.7% and trading around $4,090 an ounce, even as equities slipped and leveraged positions were unwound. A Bank of America survey suggested bullion may be one of the more favored global assets for 2026second only to the yenat a moment when the next big test for risk appetite arrives Wednesday with Nvidia (NASDAQ:NVDA)’s earnings.
Behind the scenes, longer-term buyers and central banks appear to be absorbing much of the forced selling triggered by recent volatility. Saxo Bank’s Ole Hansen noted that this steady demand could be building the groundwork for another advance in 2026. Gold has gained about 55% this year and is still positioned for its strongest annual performance since 1979, supported by persistent central-bank purchases and investors hedging against risks tied to sovereign debt and currencies. Even after pulling back from last month’s record, the broader precious-metals complexsilver, palladium and platinumalso traded higher.
The macro picture remains complicated as the longest US government shutdown in history delays key economic releases, leaving traders with limited visibility. Hopes for a near-term rate cut have softened after recent comments from Federal Reserve officials, with interest-rate swaps now pricing roughly even odds for a December move after nearly assuming a quarter-point reduction two weeks ago. Investors will receive two important signals this week: Thursday’s delayed September jobs report and Wednesday’s release of the minutes from the Fed’s Oct. 2829 meeting, which could offer insight into how reserve-management purchases and future liquidity decisions may shape demand for precious metals.