Advisers Weigh Gold’s Value After Volatility Tarnishes Record Run-up

Core Viewpoint - Gold has shown significant performance over the past few years, with a nearly 64% gain in 2025 and over 26% the year before, outperforming the S&P 500 Index in three of the last four years [2] Group 1: Performance and Volatility - Gold reached an all-time high of $5,589 an ounce on January 28, 2025, but subsequently experienced a nearly 18% drop over three trading days [3] - Despite recent volatility, gold is still up nearly 20% from the start of the year, prompting financial advisors to reconsider portfolio allocations [4] Group 2: Investment Strategies - Significant pullbacks in gold prices are viewed as buying opportunities for long-term investors, according to industry experts [4] - Dollar-cost averaging is recommended as a strategy to mitigate entry-point risk for investors looking to increase exposure to metals [6] Group 3: Market Influences - Structural factors supporting gold prices remain strong, including elevated central bank accumulation, accelerating de-dollarization, rising US debt levels, and ongoing geopolitical risks [5] - Recent volatility in gold prices has been linked to geopolitical tensions, such as US-Iran nuclear talks and a hawkish stance on interest rates following the nomination of Kevin Warsh as Federal Reserve chairman [7] Group 4: Market Sentiment - Some experts believe gold is stabilizing after its recent run-up, suggesting that consolidation is a healthy market behavior [8]