Gold price UK today: price of gold hits record £130 per gram - what it means for your investments
Does the yellow metal still deserve a place in your portfolio as we head into 2026? 🟡
- Gold has surged above $5,000 an ounce for the first time, hitting a historic high
- The rally follows a year of strong gains, with prices up more than 60%
- Global uncertainty, a weaker US dollar and geopolitical tensions are driving demand
- Investors are turning to gold as a ‘safe haven’ amid fragile market confidence
- Gold may still have a role in 2026, but mainly as a small part of a diversified portfolio
If you’ve been keeping an eye on your investments, you may have noticed a striking milestone.
The price of gold has surged above $5,000 (£3,662) an ounce for the first time in history. That’s £129.17 per gram.
By Monday (January 26) morning, the precious metal was trading closer to $5,094 (£3,730) an ounce, capping off a remarkable rally that has seen it rise by more than 60% over the past year.
For many investors, particularly older, wealthier savers looking to protect what they’ve built, that raises an obvious question: have we missed the boat, or is gold still worth considering?
Why has gold surged?
Gold’s rise has been fuelled by global uncertainty. Ongoing geopolitical tensions, fears around international trade and tariffs, and concerns over the long-term stability of major currencies have all pushed investors towards so-called “safe haven” assets.
In recent weeks, gold has also benefited from a weakening US dollar, which recently posted its worst weekly performance since May. Gold, which is priced in dollars. often becomes more attractive to international investors when the dollar falls.
Some analysts believe central banks and governments have also been quietly reducing their reliance on the dollar, adding further support to gold prices.
Ipek Ozkardeskaya, senior analyst at Swissquote, said: “US and European equities rebounded following the de-escalation, though the recovery remains limited and fragile: the next shock is a matter of when, not where.
“The global order is shifting, and trust is gone. Against this backdrop, investors continue to flock to precious metals. Gold surged past the 5,000 dollar mark early Monday - a clear signal that risk appetite has not returned.”
Is gold a sensible investment in 2026?
For investors with healthy pensions, property wealth or investment portfolios, gold is rarely about chasing big gains, and is instead often used as insurance.
Gold doesn’t produce income, and its price can fall sharply when confidence returns to markets. But it has historically held its value during periods of crisis, inflation or currency weakness, all risks that remain firmly on the table as we head into 2026.
That means gold may make sense as a small part of a diversified portfolio, rather than a replacement for shares, bonds or income-producing assets.
For those focused on preserving wealth, a measured allocation could still have a role, even at record prices.