After an impressive five-year run, gold prices surged roughly 200% to reach a record high of US$5,589.38 on 28 January 2026. Gold is known to thrive during periods of uncertainty as it is a safe-haven asset. But with prices falling in recent months, many investors now have a nagging question: should they move money into stocks instead?

Why Are Gold Prices Falling?

Gold’s record high in January came at the height of the US–Iran conflict, when safe-haven demand was at its most intense. As those tensions eased, the premium investors had been paying for protection unwound. More recently, energy-driven inflation has revived expectations that central banks may need to keep interest rates higher for longer. That matters for gold because it pays no income – when interest-bearing assets look more attractive, gold competes less well.

Gold vs. Stocks: They Serve Different Roles

Gold is a store of value. It is an effective hedge against inflation, fiat currency depreciation, and geopolitical turmoil....