Investors are now turning back to gold as their key safe-haven asset, JPMorgan said in a report released Thursday. The bank noted that significant capital is moving out of Bitcoin into exchange-traded funds (ETFs) and precious metals derivatives.
According to the World Gold Council (WGC), gold exchange-traded funds (ETFs) recorded their biggest inflows for a first quarter in three years during the initial three months of 2025.
Gold prices rose by 0.6% on Wednesday, supported by increased investor demand for safe-haven assets amid escalating global trade tensions.
Bloomberg reports that escalating US-China trade tensions are driving Chinese investors toward gold, resulting in record inflows into gold-backed ETFs. Last week alone saw $1 billion in inflows, with the trend continuing this week.
Analysts compare the current surge in gold prices to the turbulent period of the 1980s, when political and economic instability caused a similar rise in the precious metal's price, Reuters reports. However, some see gold's current rally as more sustainable.
Ongoing selling pressure in US equity markets continues to weigh on gold prices as traders liquidate positions to raise capital. Standard Chartered analysts forecast gold prices to average approximately $3,300 per ounce in the second quarter of this year.
Goldman Sachs analysts believe that the recent decline in gold prices offers excellent opportunities for investors. The experts see the sell-off in the precious metal as a chance to enter the market with a long position.
Gold prices climbed 0.5% on Tuesday, bouncing off a nearly four-week low hit in the previous session. Growing concerns over global tensions between the United States and its major trading allies have significantly increased investor demand for safe-haven assets.
Donald Trump's import tariffs continue to shock global markets. The US President's aggressive trade policy has pushed silver prices down to a 5-year low against gold.
Gold prices crashed by 0.3% on Monday, hitting a three-week low in morning trading. The market faced mounting pressure from a broad sell-off in assets, fueled by rising fears of a global recession amid escalating trade tensions.
The People's Bank of China (PBOC) expanded its gold reserves for a fifth consecutive month in March, adding 0.09 million troy ounces to its holdings. The regulator resumed its buying spree in November following a six-month pause, Bloomberg reports.
Gold is not just glitter and beauty, but also a key asset in the financial sector.
Gold appears to be something more than just a metal. It is an indicator of economic stability and a tool for managing finances.
Staying up-to-date with the latest gold news is a key to successful management of your funds.
