Geopolitical, Economic Nerves Keep Gold Strong

Tom Burroughes

27 January 2026

Gold’s surge in recent months, fuelled by concerns about geopolitics and weaker US dollar, has continued, rising above $5,000 per ounce. International tensions and macroeconomics continue to drive the price and embed its role as portfolio “insurance”. The performance of the metal is another reminder why it retains status as portfolio insurance for high net worth and ultra-HNW individuals.

Concerns about a clash between the US and Europe over a potential American move to buy Greenland (currently an autonomous territory of Denmark) appeared to have declined somewhat following the World Economic Forum gathering of political and business leaders in Davos, Switzerland, last week.

But while anxieties may have eased, the safe-haven attractions of gold remain lustrous.

“While gold is up at a record high, the market does generally feel slightly calmer than it did before WEF,” Lucy Smith, investment manager at , about his views on what is driving the gold price.