Gold is a safe-haven metal. Investors buy gold to hedge against risks such as rising inflation, geopolitical events, and financial crises. These factors can cause the price of gold to be volatile.
They can also drive its price much higher. Gold had rallied by late 2025 (up more than 50% in the past year) to more than $4,000 an ounce at one point, driven by inflationary and geopolitical concerns. However, pricing volatility has been high as investors weighed a potential recession with rising interest rates, inflation, tariffs, and other factors.