It’s no secret at this point that the price of gold has undergone tremendous performance as of late. In September, the price of the precious metal rose almost 12% to $3,859, an all-time high. This represents an astounding year-to-date uptick of 47.04%.
That fact alone should make advisors and investors alike keep a close eye on how the metal is doing. However, it remains just as important to understand exactly what is driving this rally in the first place.
Recently, Paul Wong, CFA, Market Strategist at Sprott Asset Management, evaluated the key factors backing gold’s meteoric rise. Wong noted that one of the prime factors driving gold’s performance in September was policy movements from the Federal Reserve. He pointed out that gold’s price was rising throughout the month heading into the Fed meeting, and rose further after the committee indicated it would cut rates three times in 2025.
“With the Fed set to run policy below neutral, gold is rallying as markets price in easier money and rising debasement risk,” Wong adds.
If the Fed heads into below neutral monetary policy, this could add more downward pressure on the U.S. dollar. Keeping this all in mind, folks are then turning to gold for its time-tested use as a store of value, especially when the dollar is underperforming. This may mean that gold’s price rally is just beginning.
Even if the Fed’s rate cuts don’t entirely play out as planned, macroeconomic uncertainty still makes gold a safe play. In times of doubt, investors may want to head to the investment solutions that are considered safe havens.
PHYS Could Offer a Compelling Use Case
For those looking to take advantage of the opportunity in gold, Sprott can help. One way to do so could be through taking on the Sprott Physical Gold Trust (PHYS). PHYS offers advisors and investors pure-play gold bullion exposure through the convenience of the ETF wrapper.
As one would expect, PHYS has seen tremendous performance this year, buoyed by gold’s September rally and ongoing macroeconomic uncertainty. As of September 30, 2025, the fund’s NAV has risen 46.03% year-to-date.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.
The Sprott Physical Gold Trust is generally exposed to multiple risks that have been both identified and described in the Prospectus. Please refer to the Prospectus for a description of these risks. This material must be preceded or accompanied by a prospectus. For an additional copy of the prospectus please visit https://sprott.com/investment-strategies/physical-bullion-trusts/gold/.
An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below.
Past performance is no guarantee of future results. One cannot invest directly in an index.
Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.
Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi.
Exchange Traded Funds (ETFs): SETM, LITP, URNM, URN, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL
Physical Bullion Funds:PHYS, PSLV, CEF, and SPPP.
Gold and precious metals are referred to with terms of art like store of value, safe haven and safe asset. These terms should not be construed to guarantee any form of investment safety. While “safe” assets like gold, Treasuries, money market funds and cash generally do not carry a high risk of loss relative to other asset classes, any asset may lose value, which may involve the complete loss of invested principal.
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