Gold certainly knows how to make an entrance.
The yellow metal has smashed through records so far in 2026, topping a record $5,300 an ounce for the first time Wednesday. The move caps an eye-popping run, with gold up roughly 17% so far in 2026, after a 64% surge in 2025. And gold ETFs also increased sharply this month with the largest and oldest fund, the SPDR Gold Trust (GLD), bringing in $370 million, with inflows almost every day, according to J.P. Morgan. For financial advisors, the rally is more than a shiny headline. Precious metals generally thrive as a safe haven when investors are worried about the strength of the market, geopolitical risks or macro instability. So, how are advisors handling client portfolios amid a historic bull gold-market run?
“Gold is certainly top of mind for a lot of clients right now,” said Andrew Fincher, a CFP and advisor with VLP Financial. “We do think there is some staying power as far as a gold position in a diversified portfolio.”
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At the heart of gold’s rally are rising geopolitical uncertainty and US government policy risks, which means investors are just rattled enough to reach for something that’s tangible and worth a lot of money. Gold has also historically been a strong diversifier because it often moves in the opposite direction of equity markets and currency exchanges. Right on cue, gold is hitting record highs as the US dollar is hitting multi-year lows. Wall Street is taking notice, according to a recent Reuters report:
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Several major banks have raised their gold price targets, with Goldman Sachs predicting bullion will reach $5,400 an ounce by the end of 2026.
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The London Bullion Market Association’s forecast has gold skyrocketing to $7,150 with an average price per ounce of $4,742 this year.
“The combination of rising gold prices, a weakening dollar, and equity markets near record highs tells us investors are not expressing confidence in the use of the US dollar as a reserve asset,” Catalyst Funds Chief Investment Officer David Miller said in an emailed statement. “Persistent inflation, record fiscal deficits, and geopolitical uncertainty are pushing investors to own real assets as insurance.”
Golden Eye. Despite the allure, advisors caution against getting carried away by the gold rush. Fincher recommends taking a more measured approach. For example, if equity markets drop significantly, advisors should consider paring some positions in gold and reinvesting into equities at an attractive price point. But gold buyers beware, the markets have had the higher upside over the long term, Fincher said. “We view gold as an opportunity to mitigate risk and allow for rebalancing opportunities.”
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