Gold prices have surged to over $5,066 per ounce, nearly tripling since October 2022’s post-pandemic low. Central banks are buying gold to diversify reserves and hedge against macroeconomic uncertainty, making gold the top-performing major asset class with annualized returns of 11.3%. However, caution is advised as gold historically reverts to the mean after reaching peak prices. Despite being a safe haven asset, gold can be more volatile than stocks, making it important to limit exposure to around 5% of a portfolio.

Read more at Morningstar: Gold Keeps Reaching New Heights. Here’s Why Investors Should Proceed With Caution