Gold’s recent rise to nearly $4,000 per ounce is turning heads. Experts say that if certain market conditions align, the precious metal could climb even higher. Goldman Sachs says a small shift of U.S. Treasury investments into gold could push prices to record levels, sending investors scrambling for answers.
According to the Economic Times, “This surge isn’t a random spike — it’s a signal that gold is once again becoming the world’s preferred hedge against turbulence.”
On Tuesday morning, gold reached $3,948 per ounce, a 1.9% rise that set new records, according to the Economic Times. Later the price jumped above $4,000, per The New York Times, and sat at $4,007.90 late Tuesday.
Goldman Sachs’ recent analysis projected that by mid-2026, gold could reach $4,000 per ounce, in a “perfect storm” scenario, with the potential to climb to $5,000 per ounce if just 1% of privately invested funds in the U.S. Treasury market shifted into gold.
“The SPDR Gold Shares (GLD), the largest gold-backed exchange-traded fund, jumped to $364.38, reflecting heavy institutional inflows and renewed interest from global investors,” the Economic Times reports.
Why demand is rising
Two potential Federal Reserve rate cuts this year have helped drive higher demand for gold. Expectations of easing monetary policy and a weaker U.S. dollar have made the metal more appealing to both domestic and international buyers. ”Traders are betting on easing monetary policy before year-end. A weaker U.S. dollar further enhances gold’s appeal for international buyers,” the Economic Times notes.
MarketWatch asked financial professionals to weigh in on the risks and rewards of gold. Some see it as a safe haven during market downturns, especially amid “economic uncertainty and geopolitical tensions.” Others caution that gold doesn’t generate income and is often taxed at a higher rate than other assets.
Expert perspectives
Jonathan Rose, CEO of Genesis Gold Group, emphasized the metal’s role as a safe investment: “Physical gold, secured in a vault, provides a form of financial insurance that is increasingly valuable and sought after in today’s unpredictable environment.”
Eric Croak, CFP and accredited wealth management adviser at Croak Capital, added: “It can play a role if you think of it as insurance, not an engine of growth.”
Brett Elliott, director of marketing at American Precious Metals Exchange, underscored gold’s durability: “Gold will always have value — it will never go to zero.”
While reaching $5,000 per ounce is far from guaranteed, gold’s recent value increase highlight its continued appeal as a hedge in uncertain markets.