Gold has hit all-time highs. We analyze the rally drivers, 2026 forecasts, and why central banks are buying record amounts.
Gold surpassed $5,100 per ounce in January 2026 and has maintained record levels since. That's a rise of over 35% in the past 12 months.
What's driving this rally? A combination of factors creating perfect conditions for precious metals.
Middle Eastern conflict has always driven demand for gold as a safe haven. The current escalation - strikes on Iran, closure of the Strait of Hormuz - added fuel to an already rising trend.
Central banks are purchasing an average of 585 tonnes of gold per quarter in 2026. This continues the reserve diversification trend, particularly by China, India, and Middle Eastern nations.
Markets are pricing in the Fed resuming its rate-cutting cycle in the second half of the year. Lower rates mean lower opportunity cost for holding gold - and higher prices.
Major investment banks agree on the direction:
Gold is a key instrument in portfolio risk management. At PropGate, we leverage correlations between gold, currencies, and indices to maximize strategy efficiency in volatile market conditions.
Professional management isn't about betting on one direction - it's about adapting to market conditions.
Market data as of publication date. Past performance does not guarantee future results.
Want us to manage your prop trading account?