‘Just because it's a safe haven doesn't mean it's not volatile' – HSBC's Steel says volatility will define gold in 2026

HSBC's global head of precious metals research, James Steel, has delivered a nuanced forecast for gold in 2026, emphasizing that the traditional safe-haven asset will be characterized by significant volatility. Speaking to market dynamics, Steel underscores that gold's reputation as a stable investment doesn't preclude substantial price fluctuations, signaling a complex investment landscape for precious metals investors.

The potential volatility stems from multiple interconnected factors, including potential dramatic price movements driven by global economic uncertainties. Central bank gold demand, geopolitical tensions, and evolving Federal Reserve monetary policies will likely contribute to unpredictable market conditions, challenging investors' traditional risk management strategies.

Steel's commentary arrives amid a challenging macroeconomic environment where traditional safe-haven assets are experiencing unprecedented scrutiny. Market volatility signals potential opportunities for sophisticated investors who can navigate complex investment landscapes.

The research highlights that while gold remains a critical portfolio diversification tool, investors must remain vigilant about potential short-term price fluctuations. HSBC's analysis suggests that factors like interest rate trajectories, global economic stability, and international trade dynamics will significantly influence gold's performance.

For precious metals investors, Steel's forecast serves as a critical reminder: adaptability and strategic positioning will be key to successfully navigating the anticipated market volatility. Understanding nuanced market signals and maintaining a flexible investment approach will be paramount in 2026's potentially turbulent economic environment.