I am Stephen Davis, senior market strategist at Walsh Trading, Inc., Chicago, Illinois. You can reach me at 312-878-2391 and sdavis@walshtrading.com.

A new bull market is developing with gold prices climbing to all-time highs in 2025. This surge has been attributed to a move to save havens, inflation, global tensions, and strong demand. The gold bullion price has increased by more than 50% this year to a record of more than 4000 per troy ounce after the Trump administration trade wars triggered interest in safe-haven assets while sending the U.S. dollar into a tailspin. In September, the price of gold went up 12 percent, marking the biggest monthly gain since 2011.  A crucial catalyst, according to asset managers, was the wider range of investors jumping on the bandwagon of soaring prices after years of record-buying by central bank reserve managers. 

Time to pay more attention to gold, in my opinion.  

The World Gold Council reports that global physically backed gold ETFs recorded their largest monthly inflow in September, resulting in the strongest quarter on record of US$26 billion. North American investors led the charge for most of the quarter; at US$16 billion. Read more about gold ETFs here.  According to analysts, the price surge may be the first sign of a shift among investors to make a long-term allocation to precious metals in the same way they would do for equities and bonds. Instead of the traditional 60/40 allocation of equities to bonds, Morgan Stanley has suggested 60/20/20 where gold has an equal weight with bonds. 

The daily chart below shows a 200-day moving average that is an impressive bellwether for any market. 

An option trade strategy is to buy February 2026 Comex gold 4100 call at 100. That's $10,000 per contract. That option closed at 120 (12,000) today. For a profit objective, sell the option at 200, doubling your money. Today's high in February 2026 gold was 4046.80. This option expires on January 27, 2026. 

A futures trade strategy is to buy December Comex micro gold futures at 3900. Micro gold futures (MGC) are smaller-sized futures contracts with a lower capital commitment than standard or mini contracts. When gold breaks $100, that is a buying opportunity, in my opinion. December micro gold is very liquid and has massive volume - 300,000 to 400,000 contracts per day.

Call me at 312-878-2391 to learn more about micro gold futures. 

Have an excellent day.

Stephen Davis
Senior Market Strategist 
Walsh Trading

Direct 312 878 2391 
Toll Free 800 556 9411
sdavis@walshtrading.com  
www.walshtrading.com

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Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.

Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.