Gold futures opened at $4,340 per troy ounce, nearly the same as the previous close of $4,341.10. Early trading saw gold rise above $4,400. In 2025, gold gained 65%, its best year since 1979, driven by strong demand from central banks diversifying away from the U.S. dollar.

Geopolitical risks, such as the war in Ukraine and tensions in the Middle East, support safe-haven demand for gold. Recent events like Saudi Arabia bombing a UAE weapons shipment in Yemen may reignite the precious metal’s rally. Gold’s one-year gain was 74.5% on Dec. 29.

Experts recommend various gold allocations based on investing goals. Robert R. Johnson doesn’t advocate gold investing, while Brett Elliott suggests aligning allocation with goals. Blake McLaughlin supports a 5-8% gold allocation, and Thomas Winmill believes in 5-15% long-term gold allocation, particularly in gold mining companies through a mutual fund.

Vince Stanzione recommends a 20% gold allocation, emphasizing physical gold or a gold ETF for wealth protection. Stanzione argues that gold retains purchasing power while paper currencies devalue worldwide. The price-of-gold chart shows a steady upward climb in value over time.

Read more at Yahoo Finance: Gold rises above $4,400 to start 2026