More consumers are buying or selling gold. What to know about the latest rush and swings in value

Gold Rally Reaches Record Heights Before Sharp Correction

The rush for gold climbed to unprecedented levels in early 2026, with prices hitting a fresh record of more than $5,418 per troy ounce on Wednesday. The surge prompted a flurry of activity worldwide as consumers lined up to either sell their golden possessions or join the buying frenzy.

By Friday afternoon, however, the market experienced a dramatic shift. Gold futures plunged below the $5,000 mark, potentially signaling a broader correction. The price volatility intensified following reports that President Donald Trump would nominate former Federal Reserve official Kevin Warsh as the next chair of the U.S. central bank.

Despite the recent pullback, gold prices remain substantially higher than a year ago, when New York spot prices hovered around $2,795 per troy ounce. This sustained elevation has transformed how many view the precious metal as both a commodity and investment.

Across major cities, jewelry sellers and precious metal dealers are experiencing an unprecedented influx of customers. In Paris’ historic gold district, traders at Godot & Fils report constant customer traffic from opening until closing, handling approximately 100 transactions daily.

“Even keeping money in the bank feels a bit risky,” said 76-year-old Annick Le Toulleca, who visited the shop to sell broken jewelry she had kept for years. Meanwhile, Christophe Thooris, 53, purchased a gold coin, explaining he decided to convert some cash into gold to protect his savings amid economic uncertainty.

Market analysts attribute the gold surge primarily to global instability. Daniel McDowell, a political science professor at Syracuse University, points to “a real rupture in the way we think about how the world order functions.” He explains that historically, buying gold has been a “psychological reaction” during uncertain times as investors seek safe havens for their assets.

Several specific factors have contributed to the current gold rally. The COVID-19 pandemic initially sparked increased interest in precious metals, which was further fueled by ongoing international conflicts and Trump’s aggressive tariff policies. More recently, escalating tensions in Venezuela and Iran, coupled with Trump’s controversial calls to annex Greenland and his increasingly combative stance toward U.S. allies, have rattled global markets.

Concurrent with these geopolitical concerns, a weakening U.S. dollar and questions about the Federal Reserve’s future independence have further driven investors toward gold.

The price surge has created both opportunities and challenges for retailers. Major jewelry chains like Pandora and Signet, which owns Zales and Kay Jewelers, acknowledged in their 2025 earnings calls that they face dual headwinds from both tariffs and rising costs for gold and silver.

Joshua Barone, principal wealth manager at Savvy Advisors, notes that the impact varies by product type. Gold chains have seen significant price increases, while jewelry containing lab-grown diamonds has actually become more affordable due to rapidly falling diamond costs in recent years.

For those considering selling their gold, timing remains a crucial consideration. While many consumers are capitalizing on current high prices, experts like Barone suggest waiting might be beneficial. Prices could climb further if global uncertainty deepens, though the recent correction demonstrates the market’s unpredictability.

Consumers selling gold should prioritize finding reputable dealers, whether local or online. Experts recommend checking reviews through organizations like the Better Business Bureau or consulting trusted trade associations before making transactions.

For potential buyers, financial advisors stress the importance of long-term thinking. Investments held for ten years or more generally carry less risk than attempts to profit from short-term market movements. Despite Friday’s significant losses, prices remain substantially higher than last year, though further corrections remain possible.

While gold advocates highlight its potential as an inflation hedge and portfolio diversifier, experts unanimously caution against overconcentration in any single asset class. Critics suggest alternative derivative-based investments might offer better returns for some investors.

As the market continues its volatile journey, both buyers and sellers find themselves navigating a landscape shaped by global politics, economic policy, and the enduring allure of one of humanity’s oldest stores of value.