Gold’s push above $5,000 is not a buying frenzy, but reflects structural changes in global markets - Standard Chartered’s Suki Cooper
Gold continues to see solid momentum at record highs, with prices now solidly above $5,200 an ounce. According to one market analyst, this investment demand is being driven by more than just speculative frenzy.
In her latest precious metals report, Suki Cooper, Global Head of Commodities Research at Standard Chartered, said that gold’s unprecedented rally continues to be supported by fundamental factors.
“Tactical investors have increased their exposure to gold this month (as of 20 January), but not at the same pace as the price increase. Net fund length has risen by 14.9k lots over the past two weeks largely on the back of fresh long positions being established (14.8k lots) while prices have gained around USD 300/oz over the reported period. Typically, prices have gained USD 100/oz amid a 60k lot move, suggesting other factors may now be in play,” she said. “While traditional macro drivers are playing a lesser role, the structural drivers have intensified. Growing concerns over Fed independence and scope for looser monetary policy, heightened geopolitical risks, and a reigniting of trade and tariff fears are likely driving more rapid allocations to gold, led by retail investors. Tactical buying has not been the engine behind this rally; instead, buying led by structural changes remains key, in our view.”
Cooper added that speculative positioning as a percentage of open interest remains elevated at 26.4%, but is still well below the peak of 47.9%, indicating that positioning does not appear overextended.
Meanwhile, Cooper said that the options market also points to higher gold prices in the near term.
“One-month implied volatility has spiked higher again, to levels last seen in March 2022. Meanwhile, one-month risk reversals have spiked to levels last seen in April 2024, remaining firmly in favour of calls,” she said.
Cooper also noted that physical bullion and jewelry demand remains fairly robust, with Chinese consumption once again dominating the market. She added that gold is once again trading at a premium on the Shanghai Gold Exchange.
“Gold demand typically picks up six weeks ahead of the Lunar New Year (17 February this year) during strong consumption years, but the local market has not been consistently at a premium since the start of this year. This implies scope for the gold market to be well supported on price dips until the Lunar New Year,” she said.
Finally, Cooper pointed out that central bank demand continues to provide a critical foundation for higher gold prices.
“Buying accelerated in Q3-2025 and preliminary Q4 data implies that the desire to allocate to gold has not slowed, providing a strong floor for the gold market,” she said.
