Gold has come under pressure recently, weighed down by a stronger U.S. dollar, rising bond yields, ongoing turmoil in the Middle East, and significantly reduced expectations for aggressive interest rate cuts from the Federal Reserve. 

However, there are still plenty of reasons for investors to remain bullish on the metal. For one, central banks are still adding gold to their reserves. In fact, central banks are still aggressively accumulating gold, providing another strong tailwind for the precious metal. Plus, according to Kitco.com, the latest World Gold Council survey shows that official-sector demand is still strong. In fact, according to the survey, 89% of reserve managers expect global central bank gold holdings to increase over the next 12 months. About 45% of respondents said their own institutions plan to increase gold reserves, up from 43% in 2025. 

Meanwhile, central banks now hold more gold than at any point since 1975, with reserves totaling more than 36,000 metric tonnes, according to TheConversation.com.

Wall Street is also bullish on gold’s long-term outlook. 

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JPMorgan Chase believes the precious metal could climb as high as $6,000 this year, while Goldman Sachs sees gold reaching $5,400. UBS has set a target of $5,500, and Morgan Stanley expects prices to reach $5,200 by year-end. 

While investors can buy gold stocks, such as Barrick, Newmont, or Franco-Nevada, those looking for safe diversification may want to consider gold ETFs such as:

VanEck Vectors Gold Miners ETF 

One of the best ways to diversify at less cost is with an ETF, such as the VanEck Vectors Gold Miners ETF (NYSEARCA: GDX).  Not only can you gain access to some of the biggest gold stocks in the world, you can do so at less cost. 

Better, the ETF pays a yearly dividend. It last paid out just over 63 cents per share on December 22, 2025. Before that, it paid out just over 40 cents per share on December 23, 2024. With an expense ratio of 0.51%, the ETF holds positions in Newmont Corp., Barrick Gold, Franco-Nevada, Agnico Eagle Mines, Gold Fields, and Wheaton Precious Metals to name a few.

Sincerely,

Ian Cooper