Joe Terranova, chief market strategist at Virtus Investment Partners, is changing his portfolio strategy for the coming year.
Terranova, speaking with CNBC on today’s episode confirmed that he had sold his gold ETF despite precious metals having a stellar year.
Terranova’s withdrawal from the SPDR Gold Trust GLD highlights the delicate balance investors must strike between locking profits and managing risks as they prepare for a potentially uncertain future in 2026.
Terranova’s gold fund sold off
Joe Terranova said that his GLD decision was due to the sharp overnight shift in precious metals. He added, “You can’t ignore this sudden market change we witnessed last night.”
You must reduce your risks at this moment. “That’s exactly what I did when it came to the GLD.”
He has a very disciplined approach: he aims to capture the gains that come with volatility, then evaluate opportunities after conditions have stabilized.
Risk management was more important to him than the desire to continue riding gold’s rise.
Gold in 2026: What are the risks?
Gold has performed well in 2025 but several factors may affect its value in the coming year.
As is usual, precious metals could be affected by expectations that the US dollar will strengthen due to a resilient economy or tighter monetary policies.
As investors move to yielding assets, rising real interest rates may also diminish gold’s appeal in the coming year. If inflation remains low, then the need to protect with gold will likely diminish.
While geopolitical tensions are still a factor, it is possible that the Ukraine agreement could also lead to a decline in gold’s demand as a safe haven by 2026.
The picture from a technical standpoint is also not particularly convincing. Experts say that after a steady climb over the past 12 months, the gold market may be “upside exhausted” this year and vulnerable to corrections.
Investors should be aware that 2026 may bring more challenges to maintaining the gold price’s upward trend.
Why should you choose gold as your investment?
Joe Terranova’s decision highlights a larger theme for investors. Even strong performers may become risky if valuations are stretched and volatility increases.
Gold surged in 2025, rewarding those who stayed the course. But it may not be as straightforward going forward.
Trimming exposure for disciplined managers isn’t necessarily a bad thing – instead, it can preserve capital while maintaining flexibility.
Terranova stated in his CNBC Interview that opportunities for reestablishing positions are often available once the markets have reset.
Investors will have to carefully weigh the role of gold in 2026 – and balance its appeal as a safe-haven against any macroeconomic challenges.
The coming year will test whether or not gold continues to be a top performer, and whether it retreats from its recent highs, particularly if global economic growth patterns change, as well as monetary policies.
As new information becomes available, this post Joe Terranova reduces exposure to gold ETF in 2026 could be updated.
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