Gold prices surge in early 2026: Experts weigh inflation shield
Gold prices hit record highs this week as investors moved toward safe assets amid rising geopolitical tensions, a weaker US dollar, and concerns over inflation and Federal Reserve independence. Analysts expect gold to remain strong in 2026, though prices may level off later if investor demand, especially through ETFs, begins to slow.
Gold prices high
Gold prices surged to fresh record levels this week, showing strong demand for the metal as a safe investment. Spot gold rose more than 2% to trade near $4,860 per ounce after touching an all-time high earlier in the session. US gold futures for February delivery also climbed close to $4,865 per ounce. The sharp rise reflects growing investor concern over global risks. Many market participants are turning to gold as they look for protection against inflation, political uncertainty, and market volatility.
Geopolitical disputes
One major reason behind the rally is rising tension between the US and NATO allies over Greenland. President Donald Trump has repeated his interest in gaining control of the Arctic island, a move that has drawn strong opposition from European leaders, including Danish Prime Minister Mette Frederiksen. These developments have unsettled global markets. As uncertainty increased, investors moved money out of riskier assets and into gold. Analysts say this pattern is typical during geopolitical disputes, especially when they involve major powers and strategic regions. Jamie Dutta, market analyst at Nemo.money, said gold is benefiting from its role as a safe-haven asset. He added that political events, including President Trump’s speech at the World Economic Forum in Davos, have added to investor caution.
Weaker US dollar
The US dollar has also played a key role in supporting gold prices. The dollar index fell to a two-week low after reports of tensions over Greenland triggered a selloff in US stocks and bonds. A weaker dollar makes gold cheaper for buyers outside the US, which increases demand. Investors are also watching developments at home. The US Supreme Court is expected to rule on the legality of President Trump’s attempt to remove Federal Reserve Governor Lisa Cook. The case has raised concerns about the independence of the Federal Reserve.
Analysts' say
Some analysts believe gold could move closer to the $5,000-per-ounce level if current conditions continue. John Meyer of SP Angel said investors are looking for assets that can protect against inflation. However, he warned that prices may stabilize if buying through exchange-traded funds slows later in the year. Other precious metals are also rising. Silver remains near record highs due to tight supply and safe-haven demand. Platinum has also seen gains, while palladium prices have eased slightly.