Gold fund surges as prices hit historic highs

The State Street Gold Fund has delivered a standout quarter, returning 15.36 per cent in the third quarter of 2025 and outperforming its benchmark by 0.3 per cent.

The strong performance comes as gold prices hit record levels, fuelled by central bank moves, massive investor inflows, and growing economic uncertainty.

“Gold prices hit record highs in both USD and AUD, driven by Fed rate cuts, record inflows into gold ETFs [exchange-traded funds], and ongoing US fiscal uncertainty,” State Street Investment Management APAC gold strategist Robin Tsui said.

“During the quarter, gold price in USD approached $US4000 per ounce, while gold price in AUD climbed near $5900 per ounce.”

Since its launch in July 2024, the State Street Gold Fund has posted a net return of 49.97 per cent, outperforming its benchmark by 0.73 per cent.

In the third quarter of 2025 (Q3), the USD gold price jumped 16.8 per cent, ending the quarter at $US3859 per ounce, before soaring past the historic milestone of $US4000 per ounce in early October.

Investor demand has been enormous, as global gold ETFs attracted $US26 billion in Q3, including $US17 billion in September alone, the largest monthly inflow on record. North America led with $US16.1 billion, followed by Europe with $US8.2 billion and Asia with $US1.7 billion.

“Bullish sentiment carried into early October, reinforcing gold’s outperformance and its appeal as a safe haven amid persistent macroeconomic uncertainty,” Tsui said.

The Reserve Bank of Australia’s rate cut from 3.85 per cent to 3.6 per cent boosted local gold prices, which climbed 16.3 per cent in reaching nearly $5900 per ounce.

Central banks are also playing a key role, as the National Bank of Poland continues to expand its holdings, aiming to lift gold’s share of reserves from 20 to 30 per cent.

Looking ahead, Tsui said the outlook for gold remains bright, supported by robust investment demand, rising global uncertainty, political instability in the US and the Federal Reserve’s dovish pivot.

With global tensions and economic unpredictability showing no signs of slowing, gold’s appeal as a safe haven and portfolio stabiliser is stronger than ever.