Weaker dollar sees investors turn to gold and crypto

Investors are turning to gold in response to a weaker dollar, the latest quarterly data from eToro shows.

The trading and investing platform surveyed 1,000 investors and found almost half have either adjusted or plan to adjust their portfolios in response to a weaker US dollar.

The most cited action was to invest more in gold, mentioned by 35 per cent of investors, in the second quarter of 2025.

This was followed by 30 per cent who said they would reduce investments in US stocks and 29 per cent who said they would increase investments in non-US stocks.

While a quarter said they would hold more money in cryptoassets.

Global market strategist at the company, Lale Akoner, said: “Retail investors are tactically addressing the dollar’s downward trend by reallocating into non-correlated assets like gold, a hedging behaviour that reflects a more sophisticated understanding of risk — far from the outdated view of retail investors as ‘dumb money’.”

Investor sentiment towards gold was bullish with 62 per cent expecting prices to rise in the next six to 12 months.

Of those surveyed 45 per cent already held gold positions, almost half of whom started investing in the asset in the past two years.

And among those not currently invested in gold, 29 per cent said they were considering it.

The data also found as trust in the US wained, sentiment towards Europe was improving.

Confidence in the US dropped From 41 per cent in Q4 2024, to 33 per cent in Q2 2025.

However, the youngest cohort of retail investors, Generation Z, maintained the same level of optimism across the two quarters, staying at 40 per cent.

Sentiment towards Europe saw improvements, with 20 per cent of UK investors seeing it among the regions with the strongest long-term return potential, up from just 10 per cent in Q4 2024.

Akoner added: “The decline in confidence in the US as a bastion of long-term returns has prompted investors to seek opportunities beyond American borders, leading to increased geographical diversification.

“Concerns about fiscal sustainability, political instability, and macroeconomic uncertainties have driven retail investors to explore and grow their interest in other markets.”

tara.o’connor@ft.com

What’s your view?

Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com