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gold After breaking through the $5,000 mark, it’s back in the headlines just a week later Prices rise again after Donald Trump threatens tariffs The quest for Greenland.
Ongoing geopolitical uncertainty – not only around the United States, but also in the Japanese bond market and broader EU uncertainty – has prompted many investors to turn to gold and gold. silverinstead of currency and stock market.
So, where does it stand now, and how can you buy or sell it?
How high has the price of gold gone?
As of this writing, gold is trading at $5,095 per ounce, having breached the $5,100 mark earlier in the day.
It has grown more than 12% in the past month and more than 83% last year. Since entering 2024, the price of gold has continued to rise at a rapid rate and has continued to hit record highs.
For some context, the FTSE 100 is up 19% over the past year.
Why buy gold? Should everyone have some?
Gold has long been viewed as a “safe haven” – in other words, a place where investors put their money when there is uncertainty in other areas such as government bonds or the stock market.
Precious metals are generally less volatile and can appreciate in value over long periods of time.
However, unlike other assets such as business shares (via dividends) or bank cash (with interest), it doesn’t “pay” anything, meaning that in periods when prices aren’t growing, it can lag behind other ways of growing wealth.
Unlike other metals such as silver or platinum, gold is generally not widely used in manufacturing and production, so its value is largely limited to being a store of value.
Additionally, the stock market (or parts of the stock market) can rise quickly when conditions are right, which means overexposure to gold could mean you miss out on opportunities when gold falls out of favor.
Experts tend to It is recommended to allocate no more than 5-10% Turn to gold in a diversified portfolio, but the actual amount you need depends on a host of factors specific to you: time horizon, amount, risk tolerance, whether you’re focused on preserving wealth or creating wealth, and more.
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How to buy and sell gold?
Of course, you can buy physical gold bars (called bullion bars), but the complexity and storage and insurance costs make it unlikely for most people.
However, an easier way is to buy so-called Exchange Traded Commodities (ETCs) – these investment vehicles essentially track the price of gold for you and rise or fall based on the spot price of gold. There is usually a small annual fee.
For example, the iShares Physical Gold ETC (ticker LSE: SGLN) or the Royal Mint Responsibly Sourced Physical Gold ETC (ticker: RMAU).
If you buy these products in a Stocks and Shares ISA, any gains you make will be tax-free.
Alternatively, you could invest directly in companies that mine gold, or if you don’t want to focus purely on one metal, you could invest in a broader fund that includes gold.
What do the experts say?
Most analysts and companies tracking commodities such as oil or copper, as well as gold or silver, believe there is still room to go higher, although no one knows when the tide will turn.
Geopolitical pressures could change at any time, but more than one researcher has set a 2026 gold target of $6,000.
Susannah Streeter, chief investment strategist at Wealth Club, pointed to the dollar’s impact on metals. “In the current fierce geopolitical environment, gold seems to have no boundaries at the moment. The influx into gold as a safe-haven asset continues as the precious metal moves higher. Gold prices have continuously exceeded the psychologically important 5,000-point mark, and the gold price has moved sharply higher as the trade tensions caused by the United States have unsettled investors,” she said.
“The dollar’s decline is one reason. The dollar has taken another hit as concerns about the impact of tariffs, high government spending and inflation on the U.S. economy continue, prompting investors to reconsider investments in the U.S. A weaker dollar makes precious metals more attractive because they are dollar-denominated. Gold and silver are sparkling as the priority of protecting capital moves toward providing security.”
Lale Akoner, global market analyst at eToro, added that gold is replacing long-term bonds as a defensive reserve like other investments. “Investors are increasingly using gold to hedge equity risk, and gold is starting to replace long-term government bonds as the defensive asset of choice in many portfolios. This shift reflects a structural breakdown in the traditional equity-bond relationship.
“Correlation has been hovering near zero since 2022, reducing bonds’ effectiveness as a diversification tool.
“In contrast, gold has performed better as a defensive asset. If bond-equity correlations remain unstable, gold’s role as a volatility suppressor may become more entrenched, reshaping how portfolios hedge against downside risk throughout the cycle.”
Market research firm Yardeni said the outlook for gold will push gold prices higher. “Our goal remains to reach $6,000 by the end of this year and $10,000 by the end of 2029,” they said.