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Gold prices were on a coast with a recent trading shock to investors in a safe shelter, while competing assets such as US treasures and dollar collapsed.
This is due to the seismic shift in the US President Donald Trump, and the bullion “entered the void”, as stated by a safe shelter on the market, the director of the Vivek Dhar mining and energy production bank.
“What makes this recent flight into the safe demand so unique is that the US dollar and the Treasury have been sold as the return of these assets in the US has fallen,” Dhar added.
Gold prices scale fresh highs and reached $ 3,500 for an ounce on Tuesday, and more analysts predicts that prices will unite. JP Morgan expects the yellow metal to reach $ 4,000 to the second quarter of 2026 and an average of $ 3,675 per ounce until the fourth quarter of 2025.
Prices for gold compared to dollar futures last year
Conversely, the US has been a sale in the US in recent weeks, and the 30-year profit has reached the highest since November 2023. Meanwhile, the US dollar slides and still weakened 8%, the LSEG data has shown.
While the 30-year Treasury yield received approximately 2 basic points this year, the spike during the week after Trump announced that mutual tariffs were more than 30 basic points-10 years of profitability-also 30 basic points. Meanwhile, this year, according to LSEG, this year increased by 25% of gold by 25%.
While the profitability of the US Date yield decreased from the maximum hit earlier this month, and the dollar slightly strengthened when Trump refused to comment on the shooting of Jerome Powell’s federal reserve chairman, which stood US assets, had already taken.
“Although this is far from the history of the Dollar Dollar, we can say that the US, its economy and fundamental assets, USD and Treasury have been reduced,” said CNBC World Gold Council John Reide.
Why the golden surge
Traditionally, the feedback between the Treasury and the gold seems to have collapsed. Usually, when the yield is higher, the bullion becomes less attractive, given the higher capacity of gold, because it does not pay interest.
The quality of inflation of gold makes it “special”, said Michael Ryan, a teacher of accounting, finance and economics of the University of Waikato.
Tariffs are expected to increase inflation in the US, which provides higher future interest rates, which, in turn, the Treasury, said Ryan.
“However, gold is historically perceived as an inflationary hedge that can explain the advantage for this, perhaps, this is perceived by the properties of gold inflation that make it” special “,” he added.
Unlike currencies or government bonds, gold does not have a credit risk and is not related to the economic or political trajectory of the united nation.
Another factor in breaking the traditional connection between gold and treasury will be a decrease in faith in America and the story “US Exception”, CNBC analysts said.
“There is a decrease in confidence in US assets because of the economic and geopolitical uncertainty,” said Sonya Cumari, Anz’s goods strategist.
The markets are widely viewed by Trump’s tariff war as a misconception, and the perception of gold from any monetary and fiscal policy has increased its appeal.
“Unlike currencies or government bonds, Gold does not have a loan risk and is not related to a single nation’s economic or political trajectory,” said Alexander Zumpfa, a senior trader of precious metals in Heraeus. This is especially appropriate when the confidence in traditional financial instruments fluctuates.
Further adding gold is the muted attractiveness of the US dollar. The weaker dollar usually makes the product at a green statement, including gold, more attractive to the owners of other currencies.
Diversification drive
Central banks, which are underweight in the market that are under gold compared to developed market colleagues, turned to yellow metal and are likely to remain strong buyers when they are diversified from their dollars, said Eli Lee, Chief Strategists in Singapore.
A recent sale in dollars has caused discussions about global dolorizationquestioning the attractiveness of the green lapel as a global reserve currency.
Gold float as Potential Alternative Basic Reserve Currency Several times.
“Countries have realized that gold is a potential heding of currency reserves in the US, which does not rule out US policy,” said Dhar CBA.
While Dhar said the sale in dollars was useful for gold, it is still difficult to see the future with a significant shift from green handling, given the cost of transporting and making gold-tickets, which uninteresting asset payments also limit its attractiveness.
In addition, while there was a little reassessment of the US safe asylum, it is still “really difficult to replace”, given the “most liquid market in the world”, – said Franklin income portfolio manager Tod Brighton.
He said the replacement of the US Treasury as a safe shelter does not occur when we move to a more multipolar world, he said.
