Why gold’s price is well-supported and holds more upside

GOLD had a stellar year in 2025, surging by more than 50 per cent and pushing past an all-time high of US$5,000 an ounce in January 2026. This year, the chronically elevated levels of geopolitical uncertainty might be driving a shift in investor attitudes towards risk-hedging.

Investors are increasingly open to the idea of adding gold as a risk diversifier to their portfolio, as they perceive fragility in the current world order.

The DBS Chief Investment Office (CIO) expects more upside to gold in the coming quarters for several reasons. Supportive factors that will prolong the asset’s bull run include US fiscal concerns, geopolitical and macroeconomic uncertainty, and central banks’ diversification of their reserves into gold.