Gold prices have reached yet another all-time high this week, reflecting growing investor demand amid mounting economic uncertainty and expectations that the Federal Reserve could soon cut interest rates.

So far this year, the precious metal has soared roughly 35%, with spot gold hovering near $3,600 per ounce — a remarkable surge that has captured the attention of both institutional and retail investors.

“There’s no question that gold has been in a strong uptrend, and it’s drawing significant interest,” said Blair duQuesnay, a chartered financial analyst and investment advisor at Ritholtz Wealth Management.

Gold has long been viewed as a traditional hedge against turbulent times. Research from the Federal Reserve Bank of Chicago highlights that investors typically turn to gold during economic downturns, political instability, or when interest rates are low — all factors that tend to boost its appeal as a safe-haven asset.

“Gold checks every one of those boxes right now,” said Sameer Samana, head of global equities and real assets at the Wells Fargo Investment Institute.

In its latest market outlook, Wells Fargo Investment Institute noted that continued gold buying by central banks and persistent geopolitical tensions are expected to sustain global demand for the metal.

The practical ways to invest in gold

There are several ways to gain exposure to gold, but most financial experts advise against buying physical gold bars or coins. Instead, they recommend investing through exchange-traded funds (ETFs) that track the price of gold.

“In times of market stress, gold mining stocks often lag behind physical gold,” Samana explained. “For most investors, a bullion-backed ETF provides a more direct and efficient exposure to the asset.”

Among the largest and most popular options are the SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), both of which are widely traded and offer lower costs compared to owning physical bullion.

“Gold ETFs are the most liquid, tax-efficient, and cost-effective way to invest,” duQuesnay added. “Physical gold, on the other hand, can be cumbersome due to higher transaction fees and storage costs.”

Gold mining companies, while indirectly connected to gold prices, are more influenced by operational and business performance, which introduces additional risks.

How much gold should investors hold?

Despite the metal’s recent record-breaking rally, most financial advisors continue to caution against overexposure. They generally suggest limiting gold to no more than 3% of a diversified investment portfolio.

DuQuesnay, a member of the CNBC Financial Advisor Council, said she currently holds no gold positions for her clients, emphasizing that gold’s popularity often fluctuates sharply with market sentiment.

“Are we still early in this rally or nearing the end of it?” she asked. “Because gold is ultimately priced like a commodity, it’s difficult to determine its fundamental value with precision.”

As global uncertainty persists and investors seek stability, gold remains a powerful symbol of financial safety — yet experts continue to remind investors that even the safest havens should be approached with balance and discipline.