The Bank for International Settlements said that retail investors have driven the recent surge in gold prices, leaving gold out of the traditional safe-haven model and becoming a more speculative asset. Although this round of gains may have been fueled by institutional traders seeking safe-haven exposure at a time when the market is concerned that the stock market is overvalued, there is evidence that retail investors have amplified this trend in order to “ride the windmill.” This prompted the gold price trend to deviate from the usual pattern in the past.

The Bank for International Settlements said that retail investors have driven the recent surge in gold prices, leaving gold out of the traditional safe-haven model and becoming a more speculative asset. Although this round of gains may have been fueled by institutional traders seeking safe-haven exposure at a time when the market is concerned that the stock market is overvalued, there is evidence that retail investors have amplified this trend in order to “ride the windmill.” This prompted the gold price trend to deviate from the usual pattern in the past.