The gold price has exceeded another mark in days: In an environment marked by political tensions and trade conflicts, the price temporarily climbed above $4,700 per ounce. Market observers attribute the continuing high demand for the precious metal primarily to the search by many investors for protection against geopolitical and economic policy uncertainty. The debate is receiving additional tailwind from the “Global Risks Report 2026” published by the World Economic Forum (WEF) shortly before the Annual Meeting in Davos, which documents a significantly increased risk perception among decision-makers.
Representatives from politics and business will meet in Davos from Monday to kick off the conference in Switzerland. In its report, the WEF emphasizes that “geo-economic confrontation” is seen as the greatest risk for 2026. According to the respondents, this is followed by interstate conflicts, extreme weather, social polarization, and misinformation and disinformation. In this situation, gold remains in demand as a classic “safe haven” – and the jump above $4,700 is seen by many market participants as a signal that the risk premium in the price is continuing to solidify.
Gold price record meets Davos report: Uncertainty is expected as a permanent state
The “Global Risks Report 2026” is based on a survey of WEF members and reflects their expectations for the coming years. According to the report, around 50% of those surveyed expect a “turbulent” or “stormy” world in the next two years – an increase of 14 percentage points compared to the previous year. A further 40% expect at least an “unsettled” development; only 9% expect stability, 1% “calm”. The outlook is even more skeptical over a ten-year horizon: 57% expect turbulence or storms, 32% a persistently unsettled environment, 10% stability and again 1% a calm course.
In this context, WEF President and CEO Børge Brende describes a reordering of international relations: A “new competitive order” is emerging, while major powers want to secure their spheres of influence. At the same time, he emphasizes that dialogue and cooperation remain necessary – Davos should offer a platform for this in order to better understand risks and opportunities and build “bridges”. The report thus provides a narrative that is also having an impact on the commodity markets: If uncertainty is perceived as a structural feature, the importance of hedging instruments increases – and gold is traditionally one of the preferred components of such strategies.
Tariffs, Europe and Greenland: Political tensions as price drivers for gold
According to the report, the immediate trigger for new unrest on the markets was a further escalation of the transatlantic conflict. US President Donald Trump had once again fueled tensions with Europe via social media post and held out the prospect of tariffs against several European countries. Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland were mentioned. Accordingly, a rate of 10% should apply, which could later rise to 25% – combined with the aim of building political pressure in connection with Trump’s efforts to “annex” Greenland for the USA.
According to the report, members of the European Parliament announced in response that they would put the ratification of a trade agreement that Trump and EU Commission President Ursula von der Leyen had negotiated last summer on hold for the time being. The combination of tariff threats, diplomatic escalation and the risk of a broader trade dispute is increasing uncertainty – and thus supporting the environment in which the gold price is running to new highs. An ounce of the yellow metal currently costs more than $4,720.
Analyst voices: Gold as a strategic portfolio element moves into focus
In an interview with Kitco News, Aakah Doshi, Head of Gold Strategy at State Street Investment Management, classified the development as more than just “headline risk”. In his view, geopolitical uncertainty has developed into an “embedded” threat that could have a longer-term supportive effect on gold. Doshi also argues that while the gold price may seem high, it is not necessarily excessive in a broader comparison. As an example, he refers to the development on the US stock market: If the S&P 500 reaches levels around 7,000 points, the attractiveness of gold as a hedge against setbacks, volatility shocks or liquidity events increases for him.
According to the report, the analysts at XS.com also see a changed character in the rally despite technical overbought signals. New highs indicated that the movement was driven less by short-term speculative dynamics and more by confidence issues surrounding the global financial and political system. In this environment, Tran describes gold as increasingly “strategically re-evaluated” in global portfolios – with the consequence that possible setbacks would be interpreted more as technical adjustments or rebalancing, not necessarily as a break in the trend.
For many market participants, the gold price therefore remains a yardstick for geopolitical tensions and the perception of economic policy reliability. The jump above $4,700 coincides with the start of Davos and a WEF report that describes uncertainty as a central constant of the coming years – a framework that additionally puts the role of the precious metal as a hedging instrument in the foreground.
