Photo: Depositphotos

In 2025, gold surpassed other traditional safe havens – the Japanese yen, the Swiss franc and US Treasuries – to become the main asset for protecting investments against global instability, CNBC reports.

According to market experts, the basis of gold's attractiveness lies in its freedom from government obligations.

Disable ads
Disable ads

"When an investor owns Treasury bonds, other sovereign bonds and even currencies, they are ultimately buying the economy," said Nikos Kavalis, director of Metals Focus.

In 2025, the price of gold increased by 30% and exceeded $3,400 per ounce after peaking above $3,500 in April.

Other safe havens have underperformed since the beginning of 2025:

  • the dollar index fell by almost 10%;
  • the Japanese yen rose 8% against the dollar, although Japanese government bonds fell in price;
  • The Swiss franc has strengthened by 10%, but rates in the country could become negative again.

The reason for the increase in demand for gold was geopolitical risks, in particular the war in the Middle East, as well as the loss of confidence in the economic stability of the United States.

Disable ads

Investors were alarmed by new tariffs imposed by US President Donald Trump, a downgrade of the country's credit rating, and uncertainty over the national debt.

This caused a sell-off in US bonds and a rise in yields on 30-year bonds to over 5%.

"Gold as an asset is not affected by the high debt-to-GDP ratios that affect other currencies," said Nicolas Frappell, head of institutional markets at ABC Refinery.

In addition, central banks around the world purchased over 1,000 tons of gold in 2024. This is the third consecutive year of such purchases.