Why gold prices keep rising: 5 key reasons

The gold price remains at a high level as early as the beginning of 2026 and is attracting investors' attention worldwide. After the sharp increases in recent years, gold continues to play an important role as a store of value and a safe haven. Various economic and geopolitical factors ensure that the demand for gold remains structurally high.

1. Interest rate expectations and monetary policy

Central bank policy remains a crucial factor for the price of gold. Expectations about interest rate cuts by, among others, the US Federal Reserve and the European Central Bank make savings and bonds less attractive. Because gold generates no interest, it benefits in an environment of low or falling interest rates, which increases the demand for gold.

2. Central banks are structurally buying more gold

Global central banks remain their expanding gold reserves. Countries such as China and India, in particular, are actively buying gold to diversify their reserves and become less dependent on the US dollar. This structural demand forms a stable basis for the gold price and supports the long-term trend.

3. Increasing investor demand

Both private and institutional investors continue to see gold as an important part of a diversified portfolio. Demand for physical gold, such as gold bars and coins, and for gold ETFs remains high. This indicates continued confidence in gold, even after previous price increases.

4. Geopolitical uncertainty and economic tensions

Geopolitical tensions and economic uncertainty have traditionally led to higher gold prices. In times of turmoil, investors seek protection against risks. Gold has been seen as a safe haven for centuries, benefiting from an uncertain global political and economic situation.

5. Weaker dollar and currency diversification

The price of gold often moves in the opposite direction to the US dollar. When the dollar weakens, gold becomes more attractive to international investors. In addition, more and more countries and investors are opting for currency diversification, with gold playing an important role as a neutral and globally accepted store of value.

What does this mean for investors in 2026?

For investors, gold will remain interesting in 2026 as a tool for risk diversification and protection against economic uncertainty. Although the price of gold may fluctuate in the short term, the underlying macroeconomic factors remain favorable for gold in the long term.