NEW YORK (AP) — The rush for gold climbed to new heights at the start of 2026, with prices hitting a fresh record earlier this week. And around the world, people have lined up to either sell pieces of the precious metal they already own or buy into the frenzy.
Consumers are going to local merchants to cash in golden jewelry. Some are purchasing gold coins or bars for the first time. Others are also putting money into investments like exchange traded funds, trading on the metal’s value in a similar way to stocks.
New York spot gold hit a record of more than $5,418 per troy ounce, the standard for measuring precious metals, Wednesday. Prices have fallen since — with futures plunging below the $5,000 mark by Friday afternoon, perhaps indicating a broader correction. Swings in value also became more pronounced after word leaked that President Donald Trump would nominate former Federal Reserve official Kevin Warsh to be the next chair of the U.S. central bank.
Gold can be volatile and unpredictable. Still, prices are far higher than they were a year ago — when New York spot was less than $2,795 a troy ounce. Here’s what consumers should know.
What drives surges in gold prices
A lot of it boils down to uncertainty. Interest in buying gold — and other precious metals, like silver — typically spikes when investors become anxious.
Gold prices climbed worldwide at the height of the COVID-19 pandemic and amid ongoing wars and turmoil from Trump’s tariffs on foreign goods. The latest records coincide with escalating geopolitical tensions in Venezuela and Iran, Trump’s repeated calls for the U.S. to take over Greenland and his increasingly combative stance towards America’s allies.
There’s been “a real rupture in the way we think about how the world order, if we want to call it that, functions,” said Daniel McDowell, a professor of political science at Syracuse University. In moments of instability, he explains, buying gold has historically been a sort of “psychological reaction” for some hoping to find a safe place for their money.
The latest rush for gold also corresponded with a weakening U.S. dollar and questions about the Fed’s future independence.
Rising demand for merchants
More jewelry sellers and precious metal dealers are seeing an uptick in customers looking to buy or sell gold.
The boom is tangible in Paris’ historic district for dealers of gold, silver and coins. Traders at Godot & Fils say they have a flow of customers from open to close, amounting to about 100 transactions per day.
Annick Le Toulleca, 76, came in to sell broken jewelry she kept for years. “Even keeping money in the bank feels a bit risky,” she told The Associated Press. Others were buyers. After purchasing a gold coin, Christophe Thooris, 53, said he decided to convert some cash into gold in hopes of protecting his savings.
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