“The main advantage of Gold is that it is not the responsibility of someone else,” said Nichose Kavalis, Managing Director of Metals Focus.
Sven Happe | Picture Alliance | Getty pictures
Singapore – A safe haven crown has been asserted by gold. With spot prices in 2025, Bullion benefits overtake other traditional safe sites such as Japanese Yen, Swiss Frank and the US Treasury – how the real safety looked in the face of financial sustainable concerns and investors forced investors to surround the wars.
Market experts gathered at the annual Asia Pacific precious metals conference at the heart of Gold’s appeal, said CNBC on Monday.
“The main advantage of Gold is that it is not the responsibility of someone else,” said Nichose Kavalis, Managing Director of Metals Focus. “When investors have treasures, other sovereign bonds and currencies, they are finally buying to the respective economy,” he said.
To take the performance of other unique secure sites since the beginning of the year: the dollar index, which measures the value of the Greenback against a basket currencies, has been weakened by more than 10% of the year. Safe Heaven Currencies Japanese Yen and Swiss Frank reinforced about 8% and 10% against the dollar respectively.
The yield on the 10 -year -old US government bond of the standard has been reduced by nearly 19 basis points in the year. Yields and prices in the bond market move inversely, which means lower yields are equal to high prices.
Identify gold prices from year to date
In contrast, gold prices have been steady for months. The Spot Gold has earned around 30% in the year so far, with April trading for $ 3,403.09 after an increase of 500 3,500. Gold demand has been postponed with an atmosphere of instability and uncertainty, especially with recent developments in the Middle East, on demand for safe spots for us.
“There is a growing sense of what is not sure what the future of the US dollar and the US Treasury market is. And I think it has increased its interest in alternative safe sites like gold,” said Shokai Fan, global head of the central banks of the World Gold Council.
The dollar and the US treasury are historically acting as a bastion of financial safety, but the cracks are starting to show.
US Treasures encountered Strong sales in April After President Donald Trump’s “mutual” tariff. Subsequent departure from US loan In May After the US credit rating and Trump’s tax bill was downgraded, as investor concerns about financial discipline increased, the long -standing fame of the treasurer as a safe haven, as a safe haven, was more than 5%more than the US 30 -year yield key.
Demand for US loan equipment is a bit recovered. However, the confidence in the US assets has been compromised by the volatile policy in the world’s largest economy.
Why do gold stand out
“Gold is not affected by GDP ratios from high debt that affects other currencies,” said Nicholas Frapel, the global head of the institutional markets in ABC Refinery, said the financial stance approved by the US and others is rested despite alarm bells.
The US bonds and the dollar were not the only one who had a safe haven. In May, the treasury route was sold from other major markets, with investors bail from Japanese government bonds.
“Japan has constant structural problems,” said a fan of the World Gold Council. He explained that the Japanese yen was partially weak due to interest rates.
The yield in the Japanese government bond for 10 years has raised 39 basis points since the beginning of 2025, indicating a decline in demand. Japanese yen appreciated about 8% against the dollar during the same period.
Why is gold stand out in others it is a big liquid market for one and is a political -anti.
Shakai fan
World gold council
The fan said that the bank of Japan did not increase rates like other central banks, because interest rates were “contradicted” by investors.
Central bank in Japan Stable its policy rate as 0.5% For the second consecutive meeting in May, the concerns about Trump’s tariffs clashed the country’s economic view. That is also holding The standard rate of 0.5% at the June meeting on Tuesday In the wake of increasing growth risks.
Another traditional safe-store, Swiss Frank, has been strengthened by more than 10% against the Greenback since the beginning of the year.
However, the Swiss National Bank May be trying to discourage the safe haven flowsFan said it would make the Swiss frank less competitive.
In March, Swiss National Bank Set its policy interest rate as 0.25%. Swiss customer prices fell for the first time in four years in May, leading to some forecasts of negative interest rates at the upcoming policy meeting.
“Swiss frank is still very sexy, but if the problem is (if one) now has negative rates, and if I buy Frank, I am not getting much income,” said Bart Melek, head of the TD Securities.
In that vein, gold is accompanied by other safe haven assets of gold and is associated with government owners, business experts told CNBC.
“Why is gold stand out in others. It’s a big liquid market for one and this is political -anti -anti -fan,” the fan said. “All other assets are given by government owners. So this is not a Fiat currency. Gold supply is limited by natural limits, and I think it makes it stand out as a safe haven. It is not related to any particular political danger.”
And unlike sovereign bonds or Fiat currencies, gold has no replica risks, Melek said. “Golds got an internal value. This means I don’t have to rely on government or private agents to implement my loan obligation to pay a coupon,” the technician said.
Global Central Banks’ gold wide purchases enhance its safe site appeal, Melek said. In 2024, the central banks added 1,044.6 tonnes of gold to their reserves, identifying this Third straight year Those purchases exceeded the 1,000-ton border.
The European Central Bank recently reported that it is the second largest reserve property to overtake the Euro, which is about 20% of global reserves at the end of 2024.
