In my Economics classes, I was taught that gold is a safe-haven asset, meaning that in times of uncertainty, geopolitical tension, or economic downturn, it tends to hold or increase in value.
But recently, I noticed something interesting: even during periods of global uncertainty, as is currently the case, gold prices don’t always behave the way we expect. That led me to explore further: is gold still worth having in an investment portfolio?
1. Gold Prices in 2026
Gold has seen strong price movements in recent months.
- In early 2026, gold reached record highs (approx. $5,600 per ounce)
- In March, prices dropped sharply
- As of early April 2026, gold is trading in the range of $4,700 – $4,800 per ounce
This shows that even “safe” assets can experience short-term fluctuations.
2. Why Did the Price of Gold Fall?
Gold is considered a safe-haven asset, but its price does not only move upwards.
Some reasons for short-term declines include:
- Investors need cash (liquidity) – During market uncertainty, investors may sell gold to cover losses elsewhere
- Profit-taking – After prices rise, some investors sell to lock in gains
- High interest rates – Gold does not earn interest, so investors may shift to income-generating assets
3. What Are the Market Expectations?
Many analysts remain positive about gold in the long term, because:
- Inflation remains a concern globally
- Economic uncertainty is still present
- Central banks continue to hold gold as part of their reserves
4. Is Gold Still Worth It?
Gold still plays an important role, but not as your main investment.
It is best viewed as better for protection rather than for growth because:
- It can help preserve value during inflation, but
- It may underperform when interest rates are high
That’s why many financial advisors recommend 5%–10% of your portfolio in gold.
5. Can I Invest in Gold from Kenya?
Yes, you can invest in gold locally without buying physical gold, through exchange traded funds (ETFs).
For example, the NewGold ETF trades on the Nairobi Securities Exchange. It allows you to invest in gold in a simple and accessible way.
- It tracks the global price of gold
- It is priced in Kenyan shillings
- It is backed by physical gold
Always ensure you are using a licensed broker when investing.
Disclaimer: This article is for educational purposes only and is not financial advice.
📘 Finance Dictionary
- Inflation: The increase in prices over time, which reduces how much your money can buy
- Interest Rates: The cost of borrowing money, or the return you earn on savings
- Portfolio: All your investments combined
- ETF (Exchange-Traded Fund): A fund you can buy like a stock that is used to track assets like gold
- Liquidity: How easily you can convert an investment into cash