Gold Shines Bright in 2025, Strong Momentum Expected to Continue into 2026

SEATTLE (Scrap Monster): Gold has emerged as one of the standout assets of 2025, hitting over 50 all-time highs and posting gains exceeding 60%. Analysts attribute this historic rally to a mix of heightened geopolitical tensions, economic uncertainty, a softer US dollar, and strong price momentum. Investors and central banks alike have boosted allocations to gold, seeking a stable hedge and portfolio diversification amid volatile equity and bond markets.

Looking ahead to 2026, gold’s trajectory will largely depend on ongoing geopolitical and macroeconomic developments. If global growth slows and interest rates decline, moderate gains for gold are likely. Conversely, in a severe downturn with escalating geopolitical risks, gold could outperform significantly. A strong US economic rebound could push rates higher and strengthen the dollar, applying downward pressure on prices.

Additional drivers include central bank demand, gold recycling trends, and market sentiment shaped by unforeseen “tail risk” events. Despite uncertainty, gold’s core appeal as a portfolio stabilizer remains intact.

With 2025 marking its fourth strongest annual return since 1971, gold’s momentum demonstrates its enduring role as a safe-haven asset. As markets enter 2026, investors will continue to monitor macro signals, geopolitical developments, and central bank activity to gauge the precious metal’s potential performance.