Gold Prices Dip as Trading Volume Overtakes Major Assets

Gold prices have continued to slip this week. The metal has been extending a short-term price drop even as the overall demand remains firm. The pullback comes after a strong rally over the past year. But the activity in the market suggests investors are not stepping away. It should be noted that the scale of gold trading volume has continued to expand. This points to steady interest despite bleak prices.

Also Read: SHIB Burns Jump 172% as Robinhood, Binance, Coinbase Appear on Top Burner List

Gold Pullback Comes as Trading Activity Surges Past Treasuries and FX

Gold is down about 0.15% over the past day and 8.6% over the past month. Despite this, prices have remained up more than 50% over the past year. At press time, gold was priced at $4,660 per ounce.

Data shows that the average daily gold trading volume has climbed to about $361 billion in 2025. This is nearly three times the 2021 levels. This put gold ahead of treasuries, with US Treasury bills seeing about $186 billion in daily volume. Major currency pairs like EUR/GBP see about $169 billion in daily volume, while the Dow Trades closer to $100 billion. Both are below gold.

The scale of gold’s market activity stands out even more when compared to individual stocks. Apple, Nvidia, and Tesla combined average about $26 billion in daily volume. It should be noted that this is much lower than gold.

The structure of this activity points to institutional demand. Over-the-counter (OTC) trading accounts for about $180 billion a day. Meanwhile, exchanges contribute roughly $174 billion. ETFs make up only about $7 billion. This shows that most of the gold liquidity is driven by large players rather than retail investors.

Also Read: XRP Adoption Climbs Past 8.1M Wallets as Ripple’s SWIFT Move Fuels Price Outlook

Peter Schiff Flags Growing Shift Away From Cash

Prominent investor Peter Schiff has been vocal about the shift. He warned that holding US cash is becoming riskier as inflation and debt concerns persist. He has also pointed to gold and foreign assets as alternatives. Several in the market continue to vouch for gold despite its price drop.

Amidst this, France has brought 100% of its gold reserves back to domestic vaults. France moved the last portion of its gold previously held in New York back to Paris. This brings its growing preference for direct control over physical assets to light. Despite gold’s recent price drop, activity has not slowed on any level.

Also Read: Japan’s Bond Yields Just Hit a 1999 High and the Yen Is Near Intervention