Gold has been one of the world’s best-performing assets in recent years. Here’s why investors and central banks keep buying it, and what moves the price.
Gold has been valued for thousands of years, and it still plays a big role in the global financial system.
Its price is quoted in U.S. dollars per troy ounce, which is about 31.1 grams. After trading around US$2,000 an ounce at the start of 2024, gold climbed past US$4,000 for the first time in October 2025, and was still trading around that level in late October 2026.
Unlike shares or bonds, gold doesn’t pay interest or dividends. People buy it because it holds value over long periods, can’t be printed by governments and tends to do well when other investments are struggling.
What’s driving the rise
The biggest buyers in recent years have been central banks. According to the World Gold Council, they bought more than 1,000 tonnes a year from 2022 to 2024, about double the previous pace. In September 2026, they bought about 63 tonnes, the most in a single month in almost two years.
Many of those buyers, including China, Poland, India and Turkey, are adding gold to reduce how much of their reserves are held in U.S. dollars. That shift accelerated after Western countries froze Russia’s foreign currency reserves in 2022, showing that dollar holdings could be cut off by sanctions.
Investors also buy gold as protection against uncertainty. Wars, trade tensions, high government debt and worries about inflation all tend to push the price up.
Interest rates matter too. When rates are high, investors give up more income by holding gold instead of bonds or cash, which can weigh on the price. When rates are expected to fall, gold usually benefits. A weaker U.S. dollar also tends to lift gold, because it becomes cheaper for buyers using other currencies.
Australia is one of the world’s three biggest gold producers, and gold is one of the country’s most valuable exports. Higher prices boost the profits of local miners, many of which are listed on the ASX.
Australians can invest in gold by buying bars or coins, through exchange-traded funds on the ASX that track the gold price, or through shares in gold miners. Like any investment, it carries risks. The gold price can fall sharply, physical gold must be stored safely, and gains are generally subject to capital gains tax.
