PHOENIX (AZFamily) — Gold prices reached a record high this week, climbing above $5,000 per ounce and marking a significant milestone for the precious metal market.
The surge represents a dramatic increase in recent years. In the last year, gold is up around 100%. At this time in 2025, gold was selling for less than $2,800 an ounce.
Market momentum and underlying concerns
Stephen Kates, a financial analyst with Bankrate, said multiple factors are driving gold to record levels.
“There is certainly an element of momentum to this, but there are underlying concerns about a variety of things, concerns about U.S. economic conditions, concerns over trade tensions, concerns about the level of debt the U.S. has,” Kates explained.
Kates expects gold prices to continue rising this year. He said the precious metal offers comfort to investors and institutions.
“There is a lot of comfort in gold; it’s been a value for years. Far before we had the modern economies of today, there was gold, and I think that comfort runs deep for a lot of people and institutions,” Kates said.
Investment options for gold
For investors interested in gold, Kates recommends starting with exchange-traded funds.
“The easiest way to invest in gold is to buy a gold spot ETF, something that is going to track the price of gold, now you can also invest in equities that are in the gold industries,” Kates said.
Kates said gold and precious metals can play a role in portfolio diversity, but investors should limit their exposure.
“Holding gold in and of itself shouldn’t be a dominant position in your portfolio, it’s very volatile and there is risk that it could fall off a cliff,” Kates said. “I’d say for gold in and of itself, I would not have more than 5% of your portfolio in that.”
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