Prof G Markets What’s Driving 2025’s Gold Rush? & The Incredible Risk of Perpetual Futures Trading
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Sep 25, 2025 Robert Haworth, Senior Investment Strategist at U.S. Bank Wealth Management, joins to discuss the driving forces behind gold's 2025 rally. He highlights central bank buying as the primary catalyst, alongside diversification strategies amid geopolitical concerns. The conversation shifts to the booming market of perpetual futures trading, which Haworth argues is more akin to gambling than investing, driven by extreme leverage and regulatory gaps. Key indicators for monitoring these trends include the 10-year yield and equity multiples.
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Why Nations Want More Gold
- Countries are increasing gold to diversify away from other reserve currencies and reduce sanction vulnerability.
- China holds far less gold than the U.S., so significant buying would be required to rebalance reserves.
Speculation Is Amplifying The Move
- Recent price momentum shows speculative ETF and futures demand is amplifying gold.
- Actual central bank follow-through would be the decisive factor to sustain higher prices.
Gold Needs Constructive Liquidity To Shine
- Gold acts as a safe haven when liquidity is constructive, not during cash-driven liquidity crises.
- Rate cuts and returning liquidity support safe-haven flows into gold today.