Gold investors are looking for firmer footing after a sharp reversal that has undermined the precious metal’s traditional role as a refuge during periods of global tension.
Bullion began 2026 with a momentum-driven rally that carried it to a record above $5,500 an ounce. It has since fallen below $4,000, leaving the metal down more than 8% for the year and on course for its worst annual loss in more than a decade.
The decline has been driven by several pressures, including the investment boom linked to artificial intelligence, rising bond yields and expectations of higher interest rates. These factors have weighed on gold despite persistent global friction.
Investors are now assessing whether a political shift in the United States could help restore gold’s safe-haven appeal and provide support after the year’s steep selloff.
Sources: Bloomberg Markets.