Gold Rebounds as Investors Weigh Next Steps Amid Ongoing Volatility
Gold prices have rebounded in recent weeks after a sharp correction earlier this year. The precious metal had surged to record highs in early 2026, only to pull back sharply and test investor confidence.
The correction was substantial, with gold prices losing almost 30% of their value before recovering to around $4,600 an ounce. Despite the volatility, investment demand for gold remained strong, according to the World Gold Council. The average gold price in the second quarter stood at $4,506 an ounce, 8% below the record average reached in the first quarter but still 37% higher than a year earlier.
Josh Gilbert, eToro Lead Analyst, APAC and Middle East, noted that the correction provided long-term buyers with a better entry point. 'Gold has reminded investors this year that even a safe haven can be anything but safe in the short term,' he said.
The UAE stands out as a notable example of investment demand for gold. Bar and coin investment demand increased 30% year-on-year in the second quarter, with safe-haven buying and bargain hunting during the price correction helping to support demand.