With little new news influencing gold markets today, let’s recap the key factors that pushed gold prices toward the remarkable level of $5,000 per ounce over the past year or two. Geopolitical Risk as a Major Driver Rising geopolitical tensions have been one of the strongest forces behind gold’s climb. Conflicts in the Middle East — including a direct naval clash between U.S. and Iranian forces near the Strait of Hormuz — sparked sharp rallies as investors sought safety in hard assets. Meanwhile, the breakdown of peace talks between Ukraine and Russia and the controversial U.S. capture of Venezuelan President Nicolás Maduro intensified fears and boosted demand for precious metals. Trade uncertainty also contributed. Policies under President Trump’s “America First” agenda — such as threats of 100% tariffs on Canada and renewed interest in acquiring Greenland — created economic instability, weakening confidence in stocks and bonds and driving capital into gold. Monetary Policy and Economic Uncertainty Domestically, turmoil around the Federal Reserve also affected sentiment. A criminal investigation into Fed Chair Jerome Powell raised doubts about the central bank’s independence and unsettled institutional investors. Additionally, softer-than-expected jobs data strengthened expectations of future rate cuts, making gold — which doesn’t pay interest — more attractive. However, when Kevin Warsh was nominated to replace Powell, markets briefly sold off as investors anticipated tighter policy under his leadership. Structural and Institutional Demand A key long-term factor has been strong institutional buying. Central banks — led by the **People’s Bank of China and the Reserve Bank of India — continued large-scale purchases of gold as they diversified away from U.S. Treasury holdings, adding well over 1,000 tonnes annually to their reserves. This consistent buying helps create a structural support level under prices. Gold-backed ETFs also saw record inflows in India and North America, adding steady demand. A newer trend has been large cryptocurrency firms purchasing physical bullion to back digital token reserves, adding another layer of institutional support. Market Fluctuations and Outlook Despite this strong rally, the market did experience pullbacks — most notably in February 2026 — when geopolitical risk premiums eased and technical market rebalancing prompted short-term selling. These declines were orderly and short-lived. Overall, institutional analysts remain positive about gold’s prospects. If ongoing fiscal imbalances, high global debt, and political fragmentation persist, many see the potential for gold to move even higher — with some forecasts suggesting levels in the $6,000–$7,000 range by late 2026.