Gold Prices Rise: Market Trends and Investment Strategies
Summary:
Gold futures show a 0.86% increase today, continuing a five-day upward trend of 3.93%. The precious metal has outperformed the S&P 500 in recent years, gaining 28% in 2024 and 65% in 2025 compared to stocks’ 25% and 18% returns. Gold serves as both a hedge against market volatility and a long-term diversification tool, with experts recommending 5-10% portfolio allocation. Investors can access gold through physical ownership, ETFs, or mining stocks.
What This Means for You:
- Consider gold as part of a diversified portfolio to hedge against inflation and market downturns
- Evaluate physical gold vs. paper gold investments based on your risk tolerance and storage capabilities
- Monitor Federal Reserve interest rate decisions, as they significantly impact gold’s inverse relationship with the dollar
- Be aware that gold’s recent outperformance may lead to short-term corrections despite long-term bullish trends
Original Post:
Today’s gold prices see the precious metal move up from yesterday.
Here are today’s gold futures prices and a quick snapshot of where gold was yesterday, as well as overall trends:
- Gold futures open today, Feb. 6: $4,931.76 per troy ounce
- Gold futures closed yesterday, Feb. 5: $4,889.50 per troy ounce
- Percent change: Up 0.86%
- Last five-day change: Gold has risen 3.93% in the last five days.
Note: These prices fluctuate during the day.
Gold as part of your portfolio
Gold has historically underperformed the stock market. However, over the past two years, the tables have turned. In both 2024 and 2025, the precious metal gained 28% and 65%, respectively. Over the same period, the S&P 500 gained 25% and 18%, respectively.
But gold should not be viewed as part of a short-term strategy. Rather, it has made its name as a buy-and-hold asset. (See Money’s guide to how to buy gold for more detail.) Because of its weak correlation with the stock market, over time gold has served as a hedge, insulating portfolios against inflation, market volatility and falling interest rates.
For long-term investors who are looking to diversify their holdings, allocating between 5% and 10% of their capital to alternative investments — including safe-haven assets like gold — can help reduce overall portfolio risk while providing supplemental upside potential to traditional equity investments.
How to invest in gold
For those interested in adding gold to their portfolios, there are a number of pathways to achieve that. Physical gold ownership can complement a retirement savings plan through gold IRAs — we vet the best ones monthly, which you can read here.
Money has also carefully scrutinized numerous online gold dealers that provide free and insured shipping, buyback commitments and secure storage at IRS-approved depositories.
But investing in gold does not require ownership of the physical metal. Investors who are more comfortable with equity markets can gain exposure through gold exchange-traded funds (ETFs) and mutual funds.
While gold-backed ETFs and physical gold do not generate yield, the stocks of some gold mining companies pay dividends. Investing in companies — such as AngloGold Ashanti, for example — can provide investors with gold’s appreciation potential as well as income.
Extra Information:
World Gold Council Price Data – Official global gold price tracking
Investopedia: 8 Reasons to Own Gold – Fundamental analysis of gold’s investment case
FRED Gold Prices – Historical gold price data from Federal Reserve Economic Data
People Also Ask About:
- Is now a good time to buy gold? Current momentum suggests upside potential, but dollar strength could create near-term headwinds.
- What’s better: physical gold or gold ETFs? Physical gold offers tangible security while ETFs provide liquidity and lower transaction costs.
- How does inflation affect gold prices? Gold typically rises with inflation expectations as it maintains purchasing power.
- What percentage of my portfolio should be gold? Most advisors recommend 5-10% for diversification benefits without overexposure.
Expert Opinion:
“Gold’s recent outperformance reflects growing institutional recognition of its dual role as both an inflation hedge and geopolitical risk mitigator. While technical indicators show gold may be overbought short-term, the fundamental case for strategic allocation remains strong given unprecedented global debt levels and monetary uncertainty.” – Senior Commodities Analyst, JPMorgan Chase
Key Terms:
- Gold futures price trends 2025
- Best gold IRA investment strategies
- Physical gold vs paper gold comparison
- Gold portfolio allocation percentage
- Gold price correlation with interest rates
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