Table of contents
Stay informed about everything you need to know about investing
The gold price rose to a record level again this week. With that increase, there is already a return of almost 9 percent for the first weeks of 2026, after an increase of more than 42 percent last year. There are countless reasons for gold's success, but the current geopolitical turmoil seems to be a decisive factor at the moment.
Without a doubt, you haven't noticed that Donald Trump is making headlines. dominates, and that there is a lot of fear and anxiety about that. Not long ago, Venezuelan President Nicolás Maduro was abducted, deposed and transferred to the US by the United States. Meanwhile, international attention has turned to Greenland, which President Trump and the US have turned their eyes to because of strategic interests and the presence of oil and other commodities.
What makes the vicissitudes even more interesting is that the Trump administration there makes no secret of it. While then-President George W. Bush would never have admitted it was about oil when Iran invaded in 2003, Donald Trump is taking a different tack.
In Europe, people were clearly shocked by this attitude, and eight countries, including the Netherlands, responded by sending military reinforcements to Greenland. Trump responded with new levies for the countries in question, starting at 10 percent and rising to 25 percent if there is no solution by June 1.
This is all relevant to the price of gold, as it creates uncertainty among investors. It sharpens geopolitical relations and the future is less certain. As a result, investors are less afraid to take risks, and we saw almost all major stock market indices worldwide turn red.
There was a so-called 'risk-off' movement in the financial markets. A situation where investors reduce risks, flee to safe havens and buy gold. At the moment, gold clearly acts as that safe haven, as the price already jumped by almost 2 percent on Monday.
Not only does this situation cause gold to rise in the short term, it also seems to be a positive situation for the precious metal in the long term. Since Trump's installation as president in the United States, Europe has realized that it can no longer fully rely on its ally.
As a result, there are all kinds of plans created within the European Union to invest hundreds of billion to trillions of euros in defense. In other words: this turmoil and uncertainty mean a reduced level of efficiency. For years, defense was an underrated child in Europe, because we thought we could rely on America.
That no longer seems to be the case. As a result, extra spending must be made by governments, and there is very little chance that people will cut costs elsewhere to pay for those expenses. Because of this geopolitical turmoil, countries in Europe are likely to accept higher national debt.
Uncertainty on the global geopolitical scene usually results in increased levels of debt creation, and thus inflation. And gold currently clearly acts as the safe haven preferred by investors and central banks to, among other things, protect against it. It saving gold seems to be back all over again.
There is therefore a chance that the geopolitical turmoil that is currently prevailing will not only be positive for the price in the short term, but will also cause a higher gold price in the longer term.
It seems that the geopolitical balance of power is slowly but surely taking place. Since the freezing of Russia's currency reserves after they invaded Ukraine, much of the world understands that their capital is not safe in the Western financial system.
From that moment on, we see that many countries are cautiously reducing their dollar positions and opting for more diversification. No one knows what tomorrow's world will look like. It is precisely this that causes the need to build a wider portfolio, and that promotes gold.
An investment in US tech stocks depends on the future success of the United States as a global power. The rise of China and all the uncertainty we are currently seeing mean that investors are at least taking this into account and thinking about the layout of their portfolio.
Gold is an interesting asset in this regard, because it is politically and economically independent. For gold, it makes no difference which country or coalition of countries rule the world's geopolitical and financial scene.
Nothing needs to change, because the proportions remain about the same for the same money, but the fact that there is uncertainty is apparently sufficient for gold to continue to perform in this way. This is how the gold price expectations very positive, otherwise we would not see this price action.
Gold breaks record after record and starts 2026 spectacularly. Learn how geopolitical tensions and power shifts are driving this remarkable rally.
The latest updates, analysis and insights from precious metals and financial markets
Socials
