Gold is experiencing a remarkable rally, trading at levels not seen in more than four decades. New York gold futures have risen nearly 71 percent in 2025, on track for the strongest annual gain since 1979, a period marked by energy crises, soaring inflation and geopolitical tensions.
Investors are turning to the precious metal as a safe haven amid global instability. Tariffs are disrupting trade, the conflict in Ukraine continues, tensions flare between Israel and Iran, and the United States has seized oil tankers off Venezuela.
“Uncertainty remains a defining feature of the global economy,” said Joe Cavatoni, senior market strategist at the World Gold Council. “In this environment, gold has become increasingly appealing as a strategic diversifier and a source of stability.”
Gold started the year around $2,640 a troy ounce and surged past $4,500 on Monday. Analysts at JPMorgan Chase project prices could exceed $5,000 a troy ounce in 2026. This performance has outpaced the S&P 500, which has risen only 18 percent so far this year.
The Federal Reserve’s recent interest rate cuts and a weaker US dollar have further boosted demand, making gold more attractive relative to bonds. Consumers and jewelers alike are benefiting, while countries are buying gold by the ton, increasing central bank holdings.
China has been a leading buyer, seeking to reduce reliance on US assets. “The current wave of central-bank buying is different precisely because it is rooted in geopolitics,” said Ole Hansen, head of commodity strategy at Saxo Bank. Central banks have purchased over 1,000 tons of gold annually in the last three years, compared to 400 to 500 tons per year in the previous decade.
Other precious metals are also seeing significant gains. Silver futures have climbed 146 percent, platinum 150 percent, and palladium 100 percent this year. “As investors have become more cognizant of these issues, they have been looking toward gold as a safe haven,” said Matt Maley, chief market strategist at Miller Tabak + Co.
With limited supply and rising demand, analysts expect gold and other precious metals to continue their upward trajectory in 2026, offering investors protection in an increasingly volatile world.
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