Taylor Burnette

Gold’s volatility has markedly increased in 2026; however, similar episodes have occurred in periods of risk with volatility usually normalising within a few months. Bid-ask spreads have also notably risen since 2024; however, barring unusually high spikes in off market hours, the gold market still offers sizable liquidity through record trading volumes and two-way market activity. Amid a visible increase in the bond-equity correlation, gold remains a valuable strategic asset and portfolio diversifier even when accounting for its higher volatility environment.

While gold’s volatility rose in 2025, it did so from a low base and in line with other assets; gold’s vol seems to have normalized, remaining broadly in line with long-term averages.

Gold recently crossed US$3,000/oz intraday – a headline-worthy event, but the true significance for gold lies in the broader economic trends driving its rise.

Gold performed exceptionally well in 2024, outperforming all major asset classes. Gold rose 25.5%, which was likely driven by gold’s role as an effective hedge against heightened geopolitical uncertainty and market volatility.