Investors intensify demand for gold as a safe haven in 2026

Gold prices surge beyond $5,000 an ounce as geopolitical risks from Greenland to the Middle East fuel investor demand for the precious metal in 2026.

Gold prices have reached an unprecedented milestone, climbing above $5,000 an ounce on Monday, January 26, 2026. This surge reflects the yellow metal’s growing role as a refuge amid a backdrop of heightened geopolitical tensions and fiscal uncertainties worldwide.

Geopolitical flashpoints intensify demand

Tensions from Greenland and Venezuela to the Middle East have amplified concerns over global stability, prompting investors to flock to gold as a hedge. These regions have seen escalating conflicts and economic instability, reinforcing gold’s traditional status as a safe haven.

Market performance and investor sentiment

Spot gold prices and U.S. gold futures for February both gained approximately 1.2%, trading above $5,000 per ounce. Silver also saw a notable rally, rising 3% to $106.1 per ounce, supported by industrial demand alongside investment inflows.

Forecasts underscore sustained growth

Analysts from Union Bancaire Privée highlight that both institutional and retail investors have driven demand, with expectations for gold to maintain strength throughout 2026. UBP projects a year-end target price of $5,200 per ounce.

Goldman Sachs has revised its December 2026 gold price forecast upward to $5,400 per ounce, citing a broadened demand base extending beyond traditional investors. Increased holdings in Western ETFs and physical acquisitions by high-net-worth families are notable contributors.

Central banks amplify gold accumulation

Central bank purchases remain robust, averaging around 60 tonnes per month, a significant increase from pre-2022 levels. Emerging-market central banks, in particular, continue to diversify reserves into gold, driven by concerns about fiscal sustainability and macroeconomic risks.

Macro-policy risks underpin price stability

Unlike transient election-related hedges that unwound quickly after the 2024 U.S. vote, current hedges against global macro-policy risks such as fiscal sustainability concerns are expected to persist throughout 2026. This enduring risk perception supports elevated gold price levels and sustained investor interest.

The convergence of geopolitical instability, strong institutional and retail demand, and aggressive central bank gold purchases establishes a foundation for gold to remain a key asset in portfolios seeking protection against uncertainty during 2026.