Daily News Nuggets | Today’s top stories for gold and silver investors
October 28th, 2025
Gold Takes a Breather on Trade Truce Talk
Gold eased from recent highs on Monday, dropping below $4,000 as progress toward a US-China trade agreement reduced safe-haven demand. Spot gold fell as much as 3.4% to under $3,980 an ounce after negotiators signaled they were closing in on a comprehensive deal ahead of a planned summit between US and Chinese leaders.
The pullback follows a rapid rally that pushed gold to an all-time high of $4,381 last week. Market participants who rushed into positions during that surge are now trimming exposure, creating short-term volatility. Despite the decline, the underlying drivers remain intact: central bank purchases, concerns about fiscal deficits and elevated geopolitical uncertainty. Gold is still up more than 55% year-to-date, underscoring the longer-term strength behind the market.
Analysts caution, however, that this correction may not be over and that further downside is possible if risk sentiment improves further or investors reassess the pace of gains.
Some Analysts See More Pain Ahead for Gold
Not all strategists view the pullback as a buying opportunity. Citigroup analysts forecast that gold could fall to $3,800 over the next three months, citing easing trade tensions and the potential resolution of the US government shutdown as factors that could reduce demand for safe-haven assets.
At the London Bullion Market Association conference in Kyoto, World Gold Council strategist John Reade suggested that a move toward $3,500 would be a healthy correction for the market, noting that such levels would still reflect historically strong prices. Some dealers argue that retail-driven speculative flows pushed the metal into overbought territory and that a deeper reset may be needed before a sustainable new leg higher.
Still, the bearish view is not unanimous. Major Wall Street banks remain largely constructive on the longer-term outlook, pointing to structural drivers that could sustain higher prices despite periodic declines.
Wall Street Goes All-In on $5,000 Gold
Several large financial institutions continue to forecast significantly higher prices. Bank of America recently raised its 2026 target, anticipating an average price of $4,400 and suggesting that gold could reach $5,000 per ounce. The bank cites expansive fiscal policies, rising public debt and pressure to keep rates lower as key supports for bullion.
Other major firms share that bullish stance—Societe Generale has flagged the potential for $5,000 by the end of 2026, while Goldman Sachs raised its December 2026 target to $4,900. These forecasts rely on renewed investment demand; BofA estimates that a repeat of the 14% jump in investment inflows seen in 2025 would be enough to push prices past the five-thousand-dollar mark.
ETF inflows have surged year-over-year, with September recording a notable inflow as investors sought alternatives to traditional stocks and bonds. While short-term corrections are expected, many strategists say the structural case for higher gold prices remains intact.
South Korea Eyes Gold Purchases After 12-Year Freeze
The Bank of Korea indicated it may resume gold purchases for the first time since 2013, joining a broader global trend of central banks diversifying away from dollar-heavy reserves. A central bank official speaking at the LBMA conference said additional gold acquisitions are being considered from a medium- to long-term perspective.
South Korea currently holds about 104.4 tonnes of gold—roughly 1.1% of its $419 billion in foreign reserves—placing it well below many peers. The bank’s previous buying phase from 2011 to 2013 ended poorly after prices fell, which made policymakers cautious. Still, with more than 20 countries adding to reserves in the first half of 2025 and central bank demand forecast to remain strong, Seoul appears prepared to reassess its stance. Recent price dips could present an attractive entry point if officials decide to act.
Philippines Goes Against the Grain, Sells Gold at Peak
In contrast to the global buying trend, the Bangko Sentral ng Pilipinas (BSP) sold nearly 25 tonnes of gold in the first half of 2024, making it the largest central bank seller during that period according to World Gold Council data. The BSP defended the sales as a way to bolster dollar reserves, which have reached record levels.
BSP Governor Eli Remolona described gold as a volatile and costly asset to hold, pointing to storage expenses and price swings as reasons for the move. The bank’s holdings fell from 164 tonnes in late 2023 to about 128 tonnes by mid-2024, even as prices moved higher. The decision sparked political debate at home, but the BSP maintains that selling into elevated prices was a prudent way to strengthen foreign exchange buffers.