Gold has become increasingly significant in investment portfolios due to its unique risk-return profile and lack of credit risk [7faacb0c]. Factors contributing to gold's growing importance include real rates in the US, heightened geopolitical tensions, central banks' pivot towards gold, challenges in the US macroeconomic landscape, and the attractive relative valuation of gold compared to other assets [7faacb0c]. The US central bank's hawkish stance has played a significant role in shaping gold prices [ab559c52]. The Federal Reserve's monetary tightening and potential interest rate hikes have created uncertainty in financial markets, leading investors to seek the safety of gold [ab559c52]. Additionally, the Israel-Hamas conflict has contributed to geopolitical tensions, further driving up the demand for gold as a safe-haven asset [ab559c52]. The increase in crude prices has also influenced gold prices, as higher energy costs can impact inflation and currency values [ab559c52].
Investors in Asia are turning to gold as a safe haven amid economic uncertainty [3f38caca]. The COVID-19 pandemic and geopolitical tensions have led to a surge in demand for gold [3f38caca]. Gold prices have reached record highs, with investors seeking to protect their wealth [3f38caca]. Asian countries like China and India are the largest consumers of gold, with demand expected to continue rising [3f38caca]. The economic uncertainty has also led to an increase in investments in Bitcoin and other cryptocurrencies [3f38caca]. Experts believe that gold and cryptocurrencies can coexist as safe haven assets [3f38caca]. However, there are risks involved in investing in gold and cryptocurrencies, including price volatility and regulatory challenges [3f38caca].
Investors in the Asia-Pacific region are turning to gold as a diversification and safe haven investment amid uncertain economic growth and rising geopolitical risks [df197a8b]. Gold prices continue to hover around record levels as investors lose faith in underperforming asset classes [df197a8b]. A survey conducted by State Street Global Advisors and the World Gold Council found that 27% of APAC asset owners plan to increase their gold investments in the next 12 to 18 months [df197a8b]. The survey also revealed that 76% of APAC asset owners already have exposure to gold [df197a8b]. The upcoming US election and the potential for a tariff shock under a Trump victory are cited as major uncertainties driving interest in gold [df197a8b]. Central banks' efforts to diversify away from the US dollar are also contributing to increased demand for gold [df197a8b].
UBS rates gold as the most preferred geopolitical hedge and portfolio diversifier [fe0b1270]. UBS highlights gold's historical performance during times of uncertainty and its ability to preserve wealth [fe0b1270]. The article mentions UBS's view on bitcoin as a speculative investment and its comparison to gold [fe0b1270]. UBS acknowledges the growing interest in bitcoin but cautions investors about its volatility and lack of intrinsic value [fe0b1270]. UBS recommends including gold in investment portfolios as a hedge against geopolitical risks and a diversification tool [fe0b1270].