Gold Nears $3,800 Mark, But Expert Says 'We Aren't Anywhere Close To Gold Fever Yet:' 39% Of Fund Managers Have 0% Allocation
Rishabh Mishra 1 year ago
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Gold's price rallies near $3,800, but experts say no "gold fever." See why 39% of fund managers still have a 0% allocation to the metal.
Gold extended its rally Monday, nearing $3,800 an ounce as robust demand and ongoing economic uncertainty strengthened its safe-haven appeal.
Despite the near-record highs, a key survey of institutional investors indicates that a speculative frenzy has not yet taken hold, suggesting the rally could have more room to run.
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Nowhere Close To The Golden Fever
This cautious sentiment is highlighted by data from a recent Bank of America Global Fund Manager Survey, which shows that 39% of fund managers still have zero allocation to the precious metal in their portfolios.
While this figure is down from 47% in August, it points to significant untapped investment potential. Ryan Detrick, the chief market strategist at Carson Research, commented on the findings, stating, “This is simply amazing, but it also shows we aren’t anywhere close to gold fever yet.”
39% of fund managers have a 0% allocation to gold. That is simply amazing, but it also shows we aren't anywhere close to gold fever yet. pic.twitter.com/jjKTfizFUP
— Ryan Detrick, CMT (@RyanDetrick) September 21, 2025
Central Banks Holding More Gold Than US Treasuries; China Leads
The rally is instead being underpinned by robust physical demand from key markets and a flight to safety. China, the world’s largest gold consumer, saw its non-monetary gold imports surge to 104 tonnes in July, well above the five-year average.
Meanwhile, demand in India is anticipated to pick up with the start of the festival season. “With the auspicious beginning of Navratri starting today, domestic markets may hope to see some buying traction,” said Darshan Desai, CEO of Aspect Bullion & Refinery.
He added that “ongoing global economic uncertainties are expected to provide continued support for bullion prices.”
China's appetite for gold remains strong:
— The Kobeissi Letter (@KobeissiLetter) September 21, 2025
China's non-monetary gold imports jumped +64% MoM in July, or 104 tonnes, the second-highest reading this year.
Non-monetary gold imports reflect demand from households, jewelers, and private investors.
This is ~9% above the 5-year… pic.twitter.com/rb7ZQKBZnM
Gold Prices To Skyrocket To $4,000 Per Ounce Soon
Other market experts remain bullish, citing a potential major shift in investment strategy. James Turk, founder of Goldmoney, has pegged a near-term price target of $4,000 for gold.
Friday spot closes: #gold $3,685.50 #silver $43.10 Ratio: 85.5, breaking support at 86. Expect ratio to keep falling – silver outperforms gold to yearend. Near-term targets: gold $4k silver $50 Ratio 80. Silver break-out of 25-yr base when it hurdles $50 to begin its bull market. pic.twitter.com/cMWRoVF1eM
— James Turk (@FGMR) September 20, 2025
This optimism is echoed by economist Peter Schiff, who pointed to Morgan Stanley’s revision of the classic “60/40” portfolio to include gold, a move he argues is tantamount to a “sell” rating on U.S. Treasuries. As physical buyers and long-term strategists drive prices higher, the market is now watching to see when the large pool of institutional capital will join the rally.
The only way to go from a 60/40 portfolio to a 60/20/20 portfolio is to sell bonds. This amounts to Morgan Stanley reducing U.S. Treasuries to a sell. This could not have come at a worse time, as the U.S. Treasury needs to issue more Treasuries than ever before.
— Peter Schiff (@PeterSchiff) September 19, 2025
Price Action
Gold Spot US Dollar rose 1.07% to hover around $3,724.39 per ounce. Its last record high stood at $3,728.43 per ounce. It was up 23.13% in the last six months and 41.99% over the year.
Here are a few gold and gold miners linked exchange-traded funds that investors could consider investing in amid the price rally.
| Gold ETFs | YTD Performance | One Year Performance |
| Franklin Responsibly Sourced Gold ETF (NYSE:FGDL) | 38.74% | 40.01% |
| Goldman Sachs Physical Gold ETF (BATS:AAAU) | 38.40% | 40.05% |
| GraniteShares Gold Trust (NYSE:BAR) | 38.45% | 40.05% |
| VanEck Merk Gold ETF (NYSE:OUNZ) | 38.25% | 39.94% |
| SPDR Gold Trust (NYSE:GLD) | 38.20% | 39.76% |
| iShares Gold Trust (NYSE:IAU) | 38.35% | 40.00% |
| SPDR Gold MiniShares Trust (NYSE:GLDM) | 38.45% | 40.15% |
| abrdn Physical Gold Shares ETF (NYSE:SGOL) | 38.40% | 40.06% |
| iShares Gold Trust Micro (NYSE:IAUM) | 38.50% | 40.19% |
| Invesco DB Precious Metals Fund (NYSE:DBP) | 37.48% | 33.06% |
| Gold Miner ETFs | YTD Performance | One Year Performance |
| VanEck Gold Miners ETF (NYSE:GDX) | 104.75% | 79.42% |
| VanEck Junior Gold Miners ETF (NYSE:GDXJ) | 105.18% | 86.95% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, fell in premarket on Monday. The SPY was down 0.33% at $661.53, while the QQQ fell 0.44% to $596.69, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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