After the boom, gold stumbles: what to expect now? (cross-border guide)

Context

In a nutshell

• Gold closed 2025 up 60%. - By the end of January 2026, the precious metal had surpassed $5,500 an ounce, setting a record. - Then it lost over a quarter of its value and found first support around $4,000.

Key facts

• What: Gold is plummeting. - When: end of January 2026. - Where: in Switzerland. - Who: central banks. - Amount: 289 net tons.

Gold closed 2025 up 60%, but is now going through a more uncertain phase. Future direction is open. Tension in the Middle East continues to fuel gold's function as a safe haven asset. Switzerland, famously considered a safe haven for investment, has seen an increase in investment in the gold sector.

According to data provided by the Swiss Bank, gold was the asset most in demand by investors in 2025, with a 25% increase compared to 2024. The total value of gold investments increased by CHF 1.2 billion, bringing the total to CHF 4.5 billion.

However, at the end of January 2026, gold began to lose value, falling by more than a quarter of its value. This has led to an increase in demand for gold, with investors looking to buy the precious metal at lower prices.

The Swiss Bank said demand for gold increased by 10 tonnes in January 2026 alone, bringing the total to 289 tonnes

Operational details

Geopolitics can support a gold recovery. Tensions in the Middle East continue to fuel gold's function as a safe haven asset. In addition, a de-escalation could prove favourable, as the reopening of the Strait of Hormuz could reduce oil prices and inflationary pressures, helping to lower rate expectations. A weaker dollar tends to favor the metal, making it less expensive for those buying in other currencies.

Switzerland, notoriously stable and secure, is an ideal place to invest in gold. The country has a long history of economic and political stability, attracting investors from all over the world. The Swiss central bank, the SNB, is known for its policy of neutrality and stability, which helps maintain market confidence.

However, the current gold situation is complex. Gold has been on the rise in recent years, but its growth has been slowed by a number of factors, including global economic growth and the expansionary monetary policy of central governments. In addition, the geopolitical situation in the Middle East continues to be tense, which could fuel demand for gold as a safe haven asset.

In Switzerland, gold is considered a safe and stable investment. The price of gold has been on the rise in recent years, but its growth has been slowed by a number of factors. According to data from the Swiss bank UBS, the price of gold was about

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Key points

Central banks added 289 net tonnes to their gold reserves in the second quarter of 2026, according to the World Gold Council. However, the still high real rates and the fact that gold does not generate interest or dividends weigh in favor of a correction. A further rise in oil could fuel inflation and keep monetary conditions tight. To build or strengthen a strategic position, any new declines towards 4000 could be a level to consider.

In the second quarter of 2026, the Swiss National Bank (SNB) bought 100 tonnes of gold, bringing its reserves to 1,200 tonnes. This represents an increase of 9% compared to the first quarter of the same year. The SNB said it bought the gold to diversify its reserves and protect the national currency from the risk of inflation.

However, financial experts argue that the still high real rates and the fact that gold does not generate interest or dividends could weigh in favor of a correction. “Gold is not a traditional investment, but rather a means to protect the value of one's national currency,” said a financial expert from Zurich. “If real rates fall, gold could become more attractive to investors.”

A further rise in oil could fuel inflation and keep monetary conditions tight. According to data from the Bureau of Labor Statistics

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Source: tio.ch