For ages, gold has been regarded as a store of value. By 2026, however, it’s trading more like a meme stock than a safe-haven asset.
Investors traditionally flock to gold during times of crisis, soaring inflation, or stock market downturns, seeking to preserve their capital.
Yet, gold prices have experienced extreme turbulence, hitting record highs before suffering their largest single-day drop last month. Currently, gold is up approximately 15% since the start of this year.
Gold has seen significant surges before; its best year on record was 1979, when it appreciated by 144% amidst rampant inflation and escalating geopolitical tensions. Prices also jumped 24% in 2020 as the pandemic reshaped the global economic landscape.
This time, gold is benefiting from heightened geopolitical unease. As traders piled into purchases, momentum took hold, driving prices sharply upward.
Getting exposure to these precious metals has never been easier; traders can buy and sell exchange-traded funds tracking gold and silver prices just as they would standard equities. The SPDR Gold ETF—a popular fund mirroring the performance of physical gold—recorded its largest-ever monthly inflows in August, according to FactSet data.
In recent years, U.S. markets have witnessed surges driven by so-called meme stock mania, where traders coordinate to inflate stock prices dramatically. Analysts now suggest a similar phenomenon is unfolding in the metals market, with gold and silver acting like meme assets.
Gold has soared 27% in 2024 and an astounding 67% in 2025. The yellow metal first cracked $4,000 per troy ounce in October and then surpassed $5,000 in January.
“I believe there was a broad mix of hedgers, speculators, hedge funds, and retail traders—all aggressively moving and essentially pushing prices further than we might have expected, and beyond what could be sustainably maintained,” stated Joe Cavatoni, Senior Market Strategist and Head of U.S. Public Policy at the World Gold Council.
Despite experiencing its largest one-day decline ever on January 30th, gold remains positive for the year. Nevertheless, the recent instability has caused some analysts to question whether gold still shines as brightly for investors.
Meanwhile, Bitcoin has plunged 50% from its peak above $126,000 achieved in October. Analysts suggest that traders who chased the Bitcoin rally might have shifted their focus to metals, contributing to the volatility.
“This distorts gold’s historical role as a sanctuary. It’s currently trading like a momentum-driven market at the extreme end of the risk asset spectrum,” commented David Scutt, a market analyst at Forex.com, via email.
Economists believe the underlying outlook for gold remains optimistic. JPMorgan Chase forecasts the price of gold to reach $6,300 per troy ounce by the close of 2026.
As traders seek to capitalize on gains, geopolitical uncertainties persist, which bodes well for gold valuations.
Historical Volatility
Silver is also exhibiting extraordinary price swings. Silver prices more than tripled over the last year, only to fall 31% on January 30th—its worst day since 1980. Despite this, silver is still up about 138% over the past year.
On Tuesday, gold surged by 6.07%, marking its best trading day since 2009, just two days after its worst performance ever.
The Cboe Gold Volatility Index has reached its highest level this year since the Covid pandemic in 2020, highlighting the intensity of the metal’s recent fluctuations.
“It’s hard to justify labeling something a hedge when it has double-digit swings,” Steve Sosnick, Chief Strategist at Interactive Brokers, told CNN. “Your hedges shouldn’t be the most volatile component of your portfolio.”
“When you see drawdowns like that, they’re dramatic, they’re painful,” he added, “but, in a way, it’s the natural outcome of hyper-aggressive speculation.”
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