One kilogram gold bars at the ABC Refinery smelter, operated by Pallion, in Sydney, Australia. Gold prices have soared higher this year. Brendon Thorne/Bloomberg/Getty ImagesNew York —
Gold is having its best year since 1979.
Gold futures traded in New York have soared almost 71% this year, on pace for their best annual gain in 46 years. The last time gold had such a strong year, Jimmy Carter was president, a crisis was unfolding in the Middle East, inflation was soaring and the United States was in the midst of an energy crisis.
Today, tariffs are distorting international trade, conflict is raging with Russia’s war on Ukraine, there have been flare-ups between Israel and Iran and the US is seizing oil tankers off the coast of Venezuela. In times of uncertainty, investors turn to safe havens like gold.
Gold is considered a resilient investment, with investors expecting the yellow metal will retain its value in crisis, if inflation surges, or if currencies drop in value.
“Uncertainty remains a defining feature of the global economy,” said Joe Cavatoni, senior market strategist at the World Gold Council. “In this environment, gold has become increasingly appealing as a strategic diversifier and a source of stability.”
