Gold: Real Yields, Inflation, and the Case for a 5-10% Portfolio Allocation at $5,000
Gold futures are trading at $5,080.90 per ounce as of February 21, 2026, up 1.7% on the session and nearly 79% above their 52-week low of $2,844. The metal has surged past the psychologically significant $5,000 level, raising a question that millions of investors are asking: is gold still worth buying at these prices, or has the easy money already been made? The answer depends less on where gold has been and more on three structural forces that continue to drive it higher — falling real interest rates, persistent inflation above the Federal Reserve's 2% target, and a weakening US dollar. Each of these factors has a measurable, historically documented relationship with gold prices, and as of today, all three are pointing in the same direction. This analysis examines gold through the lens of real yields and portfolio construction rather than short-term price action. For investors considering whether to initiate or add to a gold position, the macro backdrop remains unusually supportive — even at $5,000.