GOLD OUTLOOK
By the end of 2025, gold was trading at a record high of just under $4 300 per ounce.
The hand that rocks the gold cradle
How often does a leader come along whose policies are so divisive that they cause global market mayhem, forcing nations to reconsider alliances and allegiances? Here we are in 2025, with the Trump effect wreaking havoc and creating market uncertainty – good news for gold though, a safe-haven investment, which has outpaced all other stocks. By the end of 2025, gold was trading at a record high of just under $4 300 per ounce. The gold bull run is set to continue into 2026 with the precious metal set to reach new highs, John Reade, World Gold Council Market Strategist for Asia and Europe, tells Modern Mining .
“W e were expecting modest upside for gold this year and underestimated the political impact that US policies would have on the market. Uncertainty is rife in today’s world and that uncertainty makes gold attractive. The fact that gold is up more than 50% year to date, I think, reflects the unusual times we’re living in.” The unusual times look set to continue with many of the stresses that have driven gold this year expected to intensify in 2026. By the first week of November, gold had appreciated by roughly 54%, compared with an 18% gain in US equities and an 8% increase in US bonds. “Investors with these three assets - US equities, US government bonds and gold – have noted the impressive gain made by gold in their portfolio, which could trigger profit taking.” Announcements from the White House and new US policies have been two of many catalysts for the soaring gold price. If 2025 is anything to go by, then
the next three years are certainly set to be mighty interesting for the global economy. Western investors return to the gold fold In the last six months Western investors have woken up to the attractiveness of having gold in their portfolios, which has also contributed to the higher gold price. Prior to this, central banks, emerging market investors and emerging market jewellery buyers were the key consumers of the precious metal. “The return of the Western investor, together with the robust demand for ETFs, has driven the price of gold to its recent highs. Since March last year, the higher gold price has had few corrections, and these have not lasted long. This time though, the buying of gold largely from Western investors, who are regarded as fickle consumers and sellers of the precious metal, is set to see more price volatility going into 2026.” Reade remains optimistic about the performance
John Reade, World Gold Council Market Strategist for Asia and Europe.
14 MODERN MINING www.modernminingmagazine.co.za | February 2026
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