Gold has long been billed as a “safe haven” asset in terms of widespread uncertainty.

And over the past year, investors have flocked to this asset class amid concerns regarding the state of the market and geopolitical issues.

Recently, the price of gold has reached record highs, surging past $4,700 per ounce. And this comes amid renewed tensions between the U.S. and Europe, a key trading and military partner.

However, there are other factors that spurred gold’s rapid rise in recent years. Among them are rising central bank purchases and skyrocketing demand in gold ETFs.

While it remains to be seen whether the gold rally has room to run, companies associated with gold will continue to rise as long as global tensions and uncertainty persists.

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Gold has long been considered as a “safe haven” asset in times of economic uncertainty, stock market volatility, and political turmoil.

Over the past year, investors have flocked to this timeless asset amid concerns regarding the state of the market and geopolitical tensions.

Growing fears of a potential AI bubble, along with the uncertainty brought by tariffs brought doubts about the health of the stock market in 2025. And following bond yield fostered similar concerns in the bond markets.

As a result gold has emerged as the ideal port in the global economy’s current storm. The price of gold first crossed $3,000 per ounce in April of last year following the Trump administration’s first announced wave of tariffs.

Since then prices have continued to steadily climb, now approaching a record $5,000 per ounce.

Central banks worldwide have ramped up their gold purchases. According to JPMorgan analysts, central banks have purchased over 1,000 tonnes of gold for three consecutive years. For 2026, roughly 755 tonnes of central bank gold purchases are being projected. While the number is slightly lower, analysts say this is still elevated compared to pre-2022 averages.

The uptick in purchase was due in part to a combination of central banks wanting to reduce dependency on the dollar and adverse geopolitical events like Russia’s invasion of Ukraine in 2022.

Another factor that has boosted the price of gold is the rapid rise of sovereign debt across the globe. The U.S.’ national debt currently sits at $36 trillion.

With investor trust weakening as a result, some have jumped to gold and other precious metals like gold, leading to growing demand from gold exchange-traded funds (“ETFs”).

In addition to a ballooning national debt, the U.S. economy in the past year has grappled with uncertainty due to the volatility brought about by inflation and fears of a global trade war caused by tariffs and geopolitical instability.

Investors are paying close attention to the Fed as well due to its disagreements with the administration regarding interest rates.

Analysts forecast gold prices will remain elevated throughout 2026. And as gold continues to appreciate in the wake of global uncertainty, companies involved in gold mining will continue to see their stock prices soar.

Mining firms Barrick Mining (ABX) and Newmont Corporation (NEM) have seen their valuations soar by over 100% in the past year.

It remains to be seen how the rest of the year will pan out. However, if uncertainty remains and global tensions continue to remain high, gold and the companies involved in its mining and trade will continue to rise.

Best regards,

Joel Litman & Rob Spivey
Chief Investment Officer &
Director of Research
at Valens Research