Gold's 2026 Trends: Portfolio Positioning Amid Sharp Rally & Global Volatility

• Gold has seen significant gains, hitting multiple record highs year-to-date, driven by both structural diversification and short-term momentum.
• Traditional safe-haven assets like bonds are now correlating more with risk assets due to high debt levels and economic uncertainty, increasing gold's appeal as a diversifier.
• Ongoing geopolitical tensions and economic policy decisions (e.g., Fed, tariffs, elections) are expected to continue driving market volatility, reinforcing gold's role.

Joe Cavatoni of the World Gold Council discusses gold's sharp rally, noting it's driven by structural factors like portfolio diversification away from stressed bonds and short-term momentum. He advises investors to focus on gold's long-term role as a diversifier against economic uncertainty and geopolitical shocks, rather than short-term speculative gains.