Gold prices have delivered one of the most dramatic runs in years — and investors are taking notice, the Financial Times reports.
After soaring roughly 70% in 2025, gold is continuing its rally into 2026, climbing about 8% already this year and hitting fresh record levels above $4,640 per ounce in mid-January as traders and buyers pour into the precious metal.
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Gold’s recent strength reflects a powerful mix of market volatility, political uncertainty, and demand from both retail and institutional buyers.
The first, and most compelling driver is geopolitical and market risk. Ongoing global tensions and unexpected political developments have pushed investors toward safe-haven assets — and gold stands out as a traditional store of value.
Related to this is gold’s standard as a safe haven. Recent gold records coincide with concerns about central bank independence and other market stress points, driving buyers into bullion and gold-backed funds.
Thirdly, while central banks continue to buy up gold, retail and exchange-traded fund inflows have also been exceptionally strong.
Demand from gold exchange-traded funds surged in 2025, making it one of the strongest years of inflows ever recorded, as investors look for both protection and profit.
Gold’s climb above $4,600 per ounce and toward the mid-$4,600s is more than symbolic — it signals that investors are willing to pay top dollar for protection in uncertain economic times.
For perspective, gold began 2025 around $2,600 per ounce and ended the year up nearly 70%, a rare and powerful performance. Furthermore, in early 2026, prices have continued to push higher, signaling broad demand across markets.
Analysts see this momentum and strong technical performance as a driver for continued interest from diversified investors — particularly those focused on long-term stability and downside protection.
Looking ahead, several major financial firms and market strategists expect gold to remain elevated throughout 2026.
Forecasts from major banks project continued demand and potential for prices to test new thresholds later in 2026, with some price targets near $5,000 per ounce by year-end.
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Factors such as potential Federal Reserve rate cuts, continued geopolitical tension, and central bank buying are cited as supportive for gold prices.
Even if momentum slows, many investors see gold as a critical part of a diversified portfolio — offering a hedge against market downturns and currency instability.
With gold’s dramatic 2025 return and early 2026 gains already setting new records, the metal’s performance has moved well beyond a defensive trade — it’s become a core strategic position for many buyers.
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