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It has been one of the best years ever for gold as the precious metal surged to an all-time high on Tuesday, reaching $4,505 per ounce.

Year-to-date, gold has returned about 69%, making this the best year for the commodity since 1979 when the price of gold rose 120%.

A confluence of factors keep investors flocking to gold as a safe haven, explained Jamie Elkaleh, chief marketing officer at Bitget Wallet.

“As we move toward 2026, it’s important to separate short-term market optimism from long-term financial safety. While the recent rally in equities shows that investors are more willing to take risk, the strong rise in gold and silver tells a different story: global uncertainty is still very much present,” Elkaleh said. “For central banks and large institutions, traditional safe havens like precious metals remain the first line of defense against geopolitical tension and currency erosion. When real stress hits the system, markets still turn to physical assets, which continue to anchor global finance.”

Outlook for gold in 2026

Gold prices have risen about 12% in the past two months, from roughly $4,000 per ounce to the current $4,500 per ounce price. Part of that is the Federal Reserve reducing interest rates, as gold prices tend to rise in a lower rate environment, but there are other reasons as well.

“Gold’s current growth cannot be explained solely by expectations of another Fed rate cut, although this factor is certainly present,” Julia Khandoshko, CEO at the European broker Mind Money, said. “Yes, decreasing the rate reduces the opportunity cost of owning gold, which does not generate interest income, but the current dynamics are much deeper. We are talking about the growing concerns of investors about the stability of the American stock market and the general nervousness of the financial system.”

Analysts have cited issues like rising debt, inflation, and the frothiness of U.S. equities, particularly those related to the AI boom.

“Investors use gold as insurance against potential problems, including overheating of certain sectors, primarily around artificial intelligence,” Khandoshko said. “These companies are too important for the economy to allow them to fall, which means that in case of complications, the regulator will save them. Such a rescue inevitably means additional pressure on the dollar and inflationary risks, which, in turn, sets the stage for further gold growth.”

Recently, Goldman Sachs set a price target of $4,900 per ounce for gold at the end of 2026, citing several factors, including increased central bank buying and broader portfolio diversification into gold among investors.

Gold at $4,900 would mean another 9% return for the precious metal in 2026.

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