As precious metals hit new historic highs in 2026, market analysts report a shift in investment strategies among investors in the UAE and the wider region. Due to extreme volatility and price drops in cryptocurrencies, capital is flowing into safe-haven assets like gold and silver.

Bitcoin Plummets as Gold Surges

The contrast between the performance of these two markets has been striking in recent months:

🔸 Bitcoin: After reaching a record high of nearly $125,000 in October 2025, it has fallen sharply to the $63,000 range and is currently trading (Tuesday night, February 17th) at around $67,000.

🔸 Gold: Not only did it cross the psychological barrier of $5,000 in January 2026, but it also surpassed $5,500 per ounce last month.

🔸 Silver: Has surpassed its historical record of $120 per ounce.

Why Are Investors Exiting Crypto?

According to Wael Makarem, Chief Market Strategist at Exness, many retail investors who entered the market with a wave of excitement are now moving to commodities to recoup their losses. Konstantinos Krystallis, Director of Client Relations at Kudotrade, cites the following reasons for the pressure on cryptocurrencies:

▪️ Regulatory crackdown in China: The imposition of stricter regulations by the Chinese government.

▪️ Financial scandals in the US: The negative impact of news related to the Jeffrey Epstein case on investor confidence.

▪️ Asset liquidation by whales: Large-scale sales by major holders to cover other financial positions.

Gold Price Forecast for 2026 and 2027

Major banks and financial institutions remain very optimistic about the future of gold:

▪️ JPMorgan Chase predicts that the upward trend in gold will continue in 2026 and 2027, with prices reaching $6,000.

▪️ UBS: Envisions a price target of $6,200 for gold this year.

Interestingly, even large institutions like Harvard University have recently reduced their Bitcoin holdings and diversified their portfolio into Ethereum and other assets.

🟠 Factors Supporting the Gold Market:

▪️ Heavy purchases by central banks around the world.

▪️ Interest rate cuts by the US Federal Reserve.

▪️ Continued geopolitical tensions in the world.