|

Gold reaches all-time high, surges past $4,500

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.

Author

Jacob Wolinsky

Jacob Wolinsky is the founder of ValueWalk, a popular investment site. Prior to founding ValueWalk, Jacob worked as an equity analyst for value research firm and as a freelance writer. He lives in Passaic New Jersey with his wife and four children.

More from Jacob Wolinsky
Share:

Editor's Picks

AUD/USD consolidates above 0.6950 amid risk aversion

AUD/USD consolidates in the Asian session on Thursday, trading just above 0.6950 as traders assess developments in the Middle East crisis. The Pentagon reportedly ordered readiness for potential strikes against Iran. This keeps the geopolitical risk premium in play, which, along with hawkish FOMC Minutes and elevated US bond yields, will likely keep the US Dollar underpinned at the expense of the pair.

USD/JPY slips below 158.00 as USD retreats

USD/JPY returns to the red below 158.00 in the Asian session on Thursday amid speculation that authorities will step in to prop up the Japanese Yen. Meanwhile, the US Dollar eases from near an 18-month high on profit taking, ignoring Wednesday's hawkish FOMC Minutes and the risk of a further escalation of tensions in the Middle East, adding to the pair's pullback.

Gold picks up pace; focus is back to $4,150

Gold regains some composure and climbs back to the vicinity $4,150 mark per troy ounce amid decent gains on Thursday. The yellow metal’s recovery follows some loss of momentum in the US Dollar strength and a mild drop in US Treasury yields in the 10y-30y segment.

Crypto Today: Bitcoin, Ethereum, XRP extend sell-off amid ETF outflows
Bitcoin (BTC) extends its decline below $83,000 on Thursday as heightened selling pressure weighs on the market. Leading altcoins, including Ethereum (ETH) and Ripple (XRP), mirror the sector-wide pullback, with ETH dipping under $2,600 and XRP challenging support at $1.40.
ECB expected to pause in October before hiking rates in December – Reuters poll
The European Central Bank (ECB) is expected to leave interest rates unchanged in October before delivering another increase in December, according to a Reuters poll conducted October 5-8. The survey shows that 70 of 73 economists expect the ECB to hold its deposit rate at 2.50% on October 29, while 64 of 73 anticipate a 25-basis-point (bps) hike in December.
The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?
The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.