Last Updated on February 9, 2026 by Deon
Gold prices remain historically high Gold prices linger well above the 5,000 dollar mark. Gold is getting a lift from the weaker U.S. dollar and high investor appetite, but easing geopolitical tensions are weighing on its traditional safe-haven appeal.
For BNY’s Head of Markets Macro Strategy – Bob Savage, the recent strength of gold prices is a indication that confidence and not fear is behind the flows into investing.
Gold and Stocks Go Hand in Hand
Historically, gold trades in opposite directions to stock markets. Recent data, however, indicate a different picture.
Bob Savage points out that the correlation is positive now for precious metal gold. Gold is also rising along with global stock markets, and that’s indicative of overall strong investor confidence — and plenty of liquidity in the financial system.
This atypical convergence implies that contrary to fleeing to safety, investors are seeing an opportunity in spreading their wings.
Weaker Dollar Supports Gold Prices
A primary reason for high gold prices has been the inability of the US dollar.
A weakening dollar makes gold cheaper for overseas buyers, raising demand. And this currency dynamic has been significantly responsible for keeping gold at these important psychological levels even while geopolitical tension remains in decline.
Gold has strong underlying support, so long as the dollar remains weak.
Smoothing Geopolitical Tensions and Reduced Risk Premium
Investors are calmed by recent diplomatic developments.
Progress in Iran–U. S. talks and increasing optimism surrounding a potential Ukraine peace deal in March have diminished concerns of serious geopolitical escalation. Investors are consequently requiring less “risk premium” in such commodities as gold and energy.
With less in the way of Geopolitical headlines concerning, traditional safe havens have eased.
Lower Volatility Encourages Equity Buying
Low geopolitical tension has also served to keep market volatility in check.
Less volatility is better suited to investing in the stock market. Where there is less uncertainty, investors tend to be more willing to re-allocate capital towards stocks and growth assets.
This backdrop is conducive to further buying for global equities, gold included.
Cash Sidelined Adds to Momentum in Markets
How the market is behaving is also influenced by all that capital sitting on the bench.
A large number of institutional and retail investors have lots of cash. And as confidence returns, this “sideline money” is slowly moving into stocks, commodities and alternative assets.
This smooth inflow is helping to fuel the present momentum in financial markets.
Outlook: Balanced Market Conditions Ahead
Going forward, gold is likely to continue being well-supported while the US dollar continues to be weak and liquidity remains ample.
But without any big geopolitical surprises, the upside may be limited. “Markets look complacent in adjusting the mix of risk to safe haven.
If global stability persists, equities probably see further inflows and gold consolidates at elevated levels instead of surging higher.
