“The golden key advantage is that it is no longer any responsibility,” said Nikos Kavalis, the General Manager on the focus of the metal.
Sven Hoppe Picture of Alliance | Getti images
Singapore – Gold has requested Crown Crown. With the price of prices on the rise of 30% in 2025. years, the Bullion rises in other traditional people, Swiss Franc, and American Franc – convinces that the investors seem like true safety as they look like true security regarding fiscal sustainability.
In the heart of the golden appeal, its freedom from government obligations, market experts collected at the Annual Conference Asia Pacific valuable metalles said Monday.
“The golden key advantage is that it is no longer any responsibility,” said Nikos Kavalis, the General Manager on the focus of the metal. “When the investor owns a brand, other sovereign bonds, and even currencies, ultimately bought in the appropriate economy,” he said.
To take stocks of performing other typical safe havens from the beginning of the year: the dollar index, which measures the value of the Greenback from the currency basket, weakened to today close to 10%. Currencies Safe refuge like Japanese yen and Swiss Fract have strengthened about 8% and 10% next to the dollar, respectively in the same time.
Yields at the Reference 10-year American government bond is about 19 base points lower in the year to date. Yields and prices move in reverse bond market, which means that lower yields are equal to higher prices.
Spot the price of gold year
In contrast, gold prices for months have consistently welcomed fresh heights. Spot Gold has received about 30% to this day, currently trading $ 3.403.09 after the top above $ 3,500 in April. The gold request has launched an atmosphere of instability and insecurity, especially with recent events in the Middle East, on top of the pattern demand for US secure refugees.
“There is an increasing sense just to be sure what the future of the American dollar and the Ministry of Finance will be. And I think it encouraged many more interests like gold,” Global Head of World Golds Globinski Tip, Shaokai Fan.
Although they are in Bland for dollar and American people who historically served as a financial security bastion, cracks begin to show.
American rydans face a Stripper Sale in April After crossing the benefits of President Donald Trump “Reciprocal” tariffs. Next exit from a long great debt in May After Moody’s Condegrade of the American credit rating and Trump tax was given a long-term in order as a secure refuge as an investor regarding fiscal discipline, with an American 30-year yield, with American 30-year yields.
Demand for American debt instruments has since recovered since. However, confidence in American property is endangered by volatile politics made in the world’s largest economy.
Why is gold standing out
“Gold as funds does not affect the debt to GDP, which has been influenced by the institutional market, who added that the fiscal state of American and others remained despite the fact that the income growth had harmonized with non-lean debt growth.
American bonds and the dollar were not the only one’s reputation of a secure refuge. The handling of the vault in May is accompanied by selling from other key markets, and investors engaged in Japanese state bonds.
“Japan also has construction issues,” said World Gold Fan. He elaborated that the Japanese was partly weak due to interest rate differentials.
Yields at the 10-year Japanese government bonds increased by 39 basis points from the beginning of 2025. years, indicating the decline in demand. Japanese Jen appreciated about 8% in relation to the dollar in the same time.
Why gold stands out among the others is that it is a big liquid market for one and it is also apolitical.
Shaokai fan
World Council for Gold
As the bank of Japan did not collect the rates even other central banks, it was “distimulation” for investors to move into Jen due to interest rate differentials, a fan said.
Japanese Central Bank Include their policy rate permanent to 0.5% For a second consecutive meeting in May, as concerns about Trump Tariff, they blurred the economic layout of the country. He also held it Reference rate at 0.5% in June meeting on Tuesday in the face of growing growth risks.
Swiss franc, another traditional secure currency, has strengthened over 10% compared to Greenback since the beginning of the year.
However Swiss National Bank Maybe trying to discourage safely flows on a safe havenWhat the Swiss franc makes less competitive, the fan said.
Return in March, Swiss National Bank Set your interest rate to 0.25%. Swiss consumer prices fell in May for the first time for four years, which created some forecasts of negative interest rates in the upcoming policy meeting.
“Swiss franc remains very sexy, but the problem is [if] Swiss now have negative rates, and if I buy Frank, I don’t get a lot of yields, “Bart Melek said, the head of the strategy of the goods on TD securities.
In this vein, gold stands out from other secure assets that issues and related to government owners, the industry experts told CNBC.
“Why gold stands out among the others is that it is a large fluid market for one and also apolitical,” the fan said. “All other assets are issued by the government owners. It is not a fiat currency. Golden supplies are limited by natural constraints, and I think it is that a special political risk,” he said it was not related to any specific political risk. “
And as opposed to the sovereign bonds or FIAT currencies, gold carries any risks in opposition, Melek said. “Gold has an internal value. This means I don’t have to rely on a government or private agent to make my obligations about long to pay the coupon,” strategist said.
The global extensive purchases of the gold of Central Bank also reinforce her complaint at a safe haven, Melek added. In 2024. the central banks added a net of 1,044.6 tons of gold into their reserves, marking it Third straight year That purchase surpassed a mark of 1,000 tons.
The European Central Bank also recently reported that gold has become the second largest reserve funds, making about 20% of global reserves at the end of 2024. Years.
