Gold’s Macro Tailwind Is Turning Into a Structural Trend
Gold’s surge past $4,000/oz isn’t a surprise move — it’s the result of a decade-long shift in how sovereigns and institutions treat the metal. The global monetary backdrop is changing:
Central Banks Are Driving This Cycle
For two years, central banks have purchased over 1,000 tonnes annually — levels usually seen only during financial crises. Their motivations are clear:
- Reserve diversification: Reducing dependence on the U.S. dollar.
- Geopolitical insulation: Owning assets immune to sanctions, political risk, or currency manipulation.
- Trust premium: Gold remains the only reserve asset with no counterparty risk.
This marks a break from the last 40 years. Gold is no longer a defensive hedge — it’s now a strategic reserve asset.
Investors Are Catching On
Large allocators are moving capital in the same direction as sovereign buyers. With expectations of rate cuts rising and global fiscal deficits widening, flows into gold ETFs, physical gold, and mining equities have strengthened across Q4.
When gold enters a multi-year cycle, miners historically outperform bullion by a wide margin. That pattern is reemerging.
Why Miners Benefit Most in This Environment
The gold price gets the headlines — but mining equities capture the leverage.
Three dynamics matter:
- Higher gold prices directly expand margins for producers and developers.
- Exploration becomes more valuable, as dollars spent on drilling historically produce outsized re-rating potential.
- A discovery scarcity premium builds: major new deposits are rare, and global reserves have been declining for a decade.
In short:
Gold moves first. Miners follow strongest. Exploration-stage names move last — and typically move the most.
This is why institutional capital has quietly been rotating into quality juniors and mid-tiers throughout 2025. The environment favors projects in Tier-1 jurisdictions with scale, historical data, and active drill programs.
Analyst Watchlist: Formation Metals Reports Visible Gold at N2
One miner our analysts are watching within the broader gold bull cycle is Formation Metals (CSE: FOMO), which released new drill results today from its flagship N2 Gold Project in Quebec — the first meaningful drilling on the property since 2008.
Formation reported visible gold in two of the first thirteen drill holes of its fully funded 30,000-metre program, including:
- Hole N2-25-001: VG within a 4.5 m pyrite-rich interval tied to quartz-carbonate veining typical of historical mineralization.
- Hole N2-25-013: VG across a 30.8 m interval in the core gold-bearing corridor of the A Zone — suggesting potential for high-grade shoots within the broader bulk-tonnage system.
The Phase 1 program (10,000 m) began in late September and targets the A, RJ, and Central zones. N2 hosts a ~871,000 oz historic gold resource across multiple zones, with the RJ Zone historically yielding grades as high as 51 g/t Au over 0.8 m.
Formation remains well-funded with ~C$13.7M in working capital and no debt, supported by Quebec exploration credits.
Link to news release:
Formation Metals Intercepts Strong Mineralization Including Visible Gold at the Advanced N2 Gold Project
Our takeaway is simple:
FOMO is not a macro driver of the gold market — but it is one of the exploration-stage names positioned to potentially benefit if the current gold cycle continues and deeper discovery work confirms scale.
WSA Take
The gold market is in the middle of a structural re-pricing driven not by speculators, but by sovereign balance sheets and long-horizon capital. Supply is tightening. Reserve replacement is falling. And miners — especially those with active exploration programs — are historically where the strongest equity performance emerges during periods like this.
Formation Metals fits into that broader theme as one of several juniors advancing large, underexplored systems in Tier-1 jurisdictions. Their latest drill results add to the early momentum, but the broader story remains the same:
If the gold bull cycle continues, miners — not bullion — are positioned to capture the lion’s share of upside.
Disclaimer
WallStAccess does not work with or receive compensation from Formation Metals or any company mentioned. This article is for informational and educational purposes only and is not investment advice. All historic resource figures should not be relied upon without further verification by a Qualified Person.
