Gold price has begun 2026 in a high note. Gold struck a record high of more than $4,600 an ounce, also buoyed by rising geopolitical tensions around Iran, although oil prices saw little reaction. U.S. gold futures for February delivery added 2.1 per cent to $4,595.30.
Safe-haven gold - which investors buy as hedge against both turmoil and inflation - hit another record high as money markets priced in a slightly higher chance of short-term U.S. interest rate cuts.
"So, between events in Iran, and potential U.S. involvement, and the (Fed) chair being the focus of a criminal probe... U.S. futures turned lower on the Powell news, which was a green light for gold to take a run higher," said Tim Waterer, KCM Trade's chief market analyst.
U.S. President Donald Trump said on Sunday he was weighing a range of strong responses, including military options, to a violent crackdown on Iranian protests which pose one of the biggest challenges to country's clerical rule since the 1979 Islamic Revolution.
Iran's Foreign Minister Abbas Araqchi said on Monday via English translation that the situation was "under total control".
Though Goldman Sachs pushed back its forecast for Fed rate cuts on Sunday, it is now expecting two 25-basis-point reductions in June and September 2026 instead of the earlier anticipated moves in March and June. Non-yielding assets tend to do well in a low-interest-rate environment and during geopolitical or economic uncertainties.
Gold vaulted above the historic $4,600 an ounce mark on Monday as a flare-up in geopolitical tensions and expectations of looser U.S. monetary policy led bullion to hit its first record peak of 2026 after a string of all-time highs last year.
Here are some ways to invest in gold:
Large buyers and institutional investors usually buy gold from big banks. Prices in the spot market are determined by real-time supply and demand dynamics.
London is the most influential hub for the spot gold market, with the London Bullion Market Association setting standards for gold trading and providing a framework for the over-the-counter market to facilitate trades among banks, dealers, and institutions.
China, India, the Middle East and the U.S. are other major gold-trading centres.
Investors can also get exposure to gold via futures exchanges, where people buy or sell a particular commodity at a fixed price on a particular date in the future.
COMEX, part of the New York Mercantile Exchange, is the largest gold futures market in terms of trading volumes.
The Shanghai Futures Exchange, China's leading commodities exchange, also offers gold futures contracts. The Tokyo Commodity Exchange, popularly known as TOCOM, is another big player in the Asian gold market.
Exchange-traded products or exchange-traded funds issue securities backed by physical metal, allowing people to gain exposure to gold prices without taking delivery of the metal itself.
Global gold ETFs witnessed the strongest year of inflows on record in 2025, led by North American funds, according to World Gold Council data. Annual inflows surged to $89 billion.
Retail consumers can buy gold from metals traders selling bars and coins in shops or online. Gold bars and coins are both effective means of investing in physical gold.
Source Name : Economic Times