Gold prices stay above $5,000 as ETF and retail demand surge

Friday 27 February 2026 - 13:37

By: Dakir Madiha

Gold prices stay above $5,000 as ETF and retail demand surge

Gold prices remain above $5,000 per ounce in late February, supported by strong inflows into exchange-traded funds (ETFs) and growing interest from a younger generation of investors. The metal is trading near $5,200, reflecting a gain of about 6.7% this month as demand broadens from central banks and institutions to individual buyers.

The SPDR Gold Trust, the largest gold-backed ETF in the world, purchased nearly 19 tons of bullion in three consecutive sessions at the end of February, according to analyst Linh Tran from xs.com. Data from the World Gold Council shows global ETF inflows of $19 billion in January, raising total assets under management to a record $669 billion and total holdings to 4,145 tons. Asia led purchases with around $10 billion, followed by North America with $7 billion.

A demographic shift is also reshaping the market. OCBC Bank in Singapore reported that two out of three new retail investors now choose gold or silver as their first investment option. The number of account holders under 40 doubled year over year, and sign-ups for precious metals accounts tripled in January 2026. The trend is driven by digital access and fractional buying through mobile platforms. In India, more than 60% of young consumers say they prefer gold to stocks, mutual funds, or cryptocurrencies, according to a survey of 5,000 people aged 18 to 39.

The Wall Street Journal noted that individual investors have benefited from the recent rally, while many professional fund managers missed it. SPDR Gold Shares gained 64% in 2025 and an additional 18% so far in 2026, outperforming the S&P 500, which has risen about 1% this year.

Forecasts suggest the momentum may continue. J.P. Morgan raised its year-end target to $6,300 per ounce, projecting about 800 tons in central bank purchases this year. Goldman Sachs anticipates $5,400, while Wells Fargo expects between $6,100 and $6,300. Geopolitical risks and slower interest rates are sustaining safe-haven demand, while HSBC Asset Management describes gold as shifting from an inflation hedge to a strategic reserve asset.

OCBC’s head of wealth management, Tan Siew Lee, cautioned that although precious metals can stabilize portfolios, investors should avoid short-term speculation. She emphasized the importance of disciplined, long-term strategies as market volatility increases.