Is Gold on the Way to Another New High?

I asked where gold was heading in 2026 in a January 6, 2026, Barchart article. I concluded with the following:

Many analysts who did not see gold’s 65.9% 2025 rally are now calling for prices to rise to $5,000 in 2026. Meanwhile, continued uncertainty in the economic and geopolitical landscapes could push prices much higher. I remain bullish on gold’s prospects for the coming year, but buying on pullbacks rather than on rallies has been optimal for over two and a half decades. I expect that trend to continue in 2026.

Nearby COMEX gold futures traded at $4,456.40 per ounce on January 5, 2026, and the price rose over $1,000 per ounce by the end of January, before gravity brought the parabolic move to a halt.

The tenth consecutive quarterly high and a correction

It did not take long for COMEX gold futures to reach their tenth consecutive quarterly record high in Q1 2026.

The quarterly continuous contract chart shows that COMEX gold futures rose 29.6% from the end of 2025, $4,341.10 closing level, to the Q1 high of $5,626.80 per ounce on January 29, 2026.

Gravity hit gold with a sledgehammer in late January and early February, sending the leading precious metal 21.9% lower to $4,423.20 per ounce on February 2. While gold’s price plunged by over 21%, it never reached the 2025 closing level and was back over $5,300 per ounce on March 2.

The case for higher highs

The compelling case for a continuation of gold’s bullish trend includes the following factors:

Gold’s bullish trend began in 1999 at $252.50 per ounce, and was over 22 times higher at the most recent late January 2026 high.
Central banks, governments, monetary authorities, and supranational institutions continue to purchase gold, adding to reserves and validating gold’s role in the global financial market.
The deterioration in the purchasing power of the dollar and other fiat currencies has caused gold to appreciate.
U.S. sanctions and tariffs support higher gold prices as countries seek to divest from the leading fiat reserve currency, the dollar.
Falling U.S. interest rates are bullish for gold as they reduce the cost of carrying inventories.
Geopolitical and economic uncertainty and turmoil are bullish for gold.