Gold is drawing renewed interest as a safe-haven investment amid escalating Middle East tensions, though financial advisors caution it should remain a limited part of a diversified portfolio.

Prices have surged recently following U.S.-Israeli strikes on Iran, with gold up roughly 23% this year after a strong 2025, and some analysts forecasting further gains.

Experts note, however, that gold can be volatile and has experienced long periods of flat performance.

Many investors gain exposure through ETFs such as SPDR Gold Shares, Invesco DB Gold Fund, or VanEck Gold Miners ETF rather than owning physical bullion, CNBC has reported.

Tax treatment varies by fund type, with physical gold ETFs taxed as collectibles at a maximum 28% rate, while futures-based and mining-stock ETFs follow different capital gains rules.