Nicos Kavalis, managing director of Metals Focus, said, “The main advantage of gold is that it is not the liability of anyone else.”
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Singapore – Gold has claimed Safe Heaven Crown. With a 30% increase in 2025 so far, bullion gains other traditional safe haveons such as Japanese Yen, Swiss Frank, and American Treasury – forcing investors to reconsider what true security prefers in front of fiscal stability concerns and struggling wars.
It has freedom from government liabilities at the center of the appeal of gold, the market expert gathered at the annual Asia Pacific valuable metals conference on Monday told CNBC.
Nicos Kavalis, managing director of Metals Focus, said, “The main advantage of gold is that it is not the liability of anyone else.” “When an investor owns a treasury, other sovereign bonds and even currencies, they are eventually buying in the respective economy,” he said.
To take stock of the performance of other specific safe havens since the beginning of the year: the dollar index, which measures the value of greenback against a basket of currencies, has weakened close to 10% in the year. Safe haven currencies such as Japanese Yen and Swiss Frank strengthened about 8% and 10% against the dollar respectively in the same period.
The benchmark 10-year-old American government bonds are about 19 basis points in a year. Yields and prices run in contrast in the bond market, meaning that low yields are from equal high prices.
Gold prices from year to year
Conversely, gold prices have been ranked freshly high for months. Spot Gold has increased by about 30% a year, currently traded at $ 3,403.09 after moving above $ 3,500 in April. The demand for gold has been inspired by the atmosphere of volatility and uncertainty, especially with recent developments in the Middle East, at the top of the demand deland for the US safe heavens.
The global head of the Central Banks of the World Gold Council, Shakoi fan said, “It is not sure what the future of the US dollar and the US Treasury market is going to be.”
Although the dollar and American Treasury have historically served as a stronghold of financial security, cracks are starting to show.
We had to face the treasury Sales in April After President Donald Trump’s “mutual” tariff rollout. Later exit from American debt for a long time In May After the downgrade of the US credit rating moody and Trump’s tax bill served as another beating as a safe shelter as a safe shelter, as investors’ concerns about fiscal discipline were extended, with the US’s 30 -year -old yield of 30 years.
The demand for US loan equipment has been reduced slightly since. However, faith in American assets has been compromised by unstable policy setting in the world’s largest economy.
Why gold stands out
Global head of institutional markets at the ABC Refinery, Nicholas Frapel said, “Gold as a property is not affected by the high debt-to-GDP ratio that affects other currencies,” the global head of the institutional markets in the ABC refinery, Nicholas Fapal, who said that the US said that the US was adopted by the US and other people said that the wagiry shrines and others were comfortable in the wake
American bonds and dollars were not the only one who had a safe shelter reputation. In May, along with the selling from the Treasury Route from other major markets, investors had a sale as well as a sale from the Japanese government’s bond.
The World Gold Council fan said, “Structural issues are also going on in Japan.” He said in detail that the Japanese yen had partly weakened due to the difference of interest rate.
The yield on a 10 -year Japanese government bonds has increased by 39 basis points from the beginning of 2025, indicating a decline in demand. Japanese Yen appreciated around 8% against the dollar in the same period.
Why gold stands out among others. It is a large liquid market for one and also, it is political.
Shaokai fan
World gold council
Fan said that Bank of Japan has not picked up rates as other central banks, it has been a “disruptive” for investors to enter Yen because due to the interest rate difference, the fan said.
Central Bank of Japan Keep your policy rate stable at 0.5% For the second consecutive meeting in May, concerns over Trump’s tariffs cloudy the country’s economic outlook. Also held Benchmark rate at 0.5% in its June meeting on Tuesday Increased growth in front of risks.
Swiss Frank, another traditional safe-heaven currency, has been strengthened by more than 10% since the beginning of the year.
However, Swiss National Bank Can try to discourage safe shelter flowWhich makes Swiss Frank less competitive, the fan said.
Back in March, Swiss National Bank Determine its policy interest rate 0.25%Swiss consumer values ​​fell for the first time in May in four years, which gave rise to some forecasts of negative interest rates in the upcoming policy meeting.
“Swiss franc is still very sexy, but the problem [if] Swiss now has negative rates, and if I buy a frank, I am not getting too much returns, “said Bart Melake, head of Commodity Strategy in TD Securities.
In that vein, gold stands out of other safe shelter assets that are issued and tied by government owners, the industry experts told CNBC.
Fan said, “Why gold stands among others, it is a large liquid market for one and at the same time, it is political.” “All other assets are issued by government owners. So it is not a fiat currency. Gold supply is limited by natural boundaries, and I think it stands as a safe shelter property. It is not associated with any specific political risk,” Fan said.
Melake said that unlike sovereign bonds or fiat currencies, there is no opposition risk in gold. The strategist said, “Gold has received internal value. This means that I do not want to trust any government or private agent to carry out my debt obligations to pay a coupon.”
The widespread purchase of gold of global central banks also enhances its safe shelter appeal, said. In 2024, central banks added 1,044.6 tonnes of gold to their reserves, which marks Third straight year That purchase has crossed the 1,000 tonne mark.
The European Central Bank recently stated that Gold defeated Euro to become the second largest reserve property, making about 20% of global reserves at the end of 2024.
