Investors flock to gold amid economic concerns over Trump's tariff war
Investors are pouring cash into gold funds due to economic concerns stemming from President Donald Trump's tariff war, leading to record highs for gold. The surge in gold purchases is driven by fears over the economy and stock markets, with a focus on safe haven assets like gold and U.S. Treasuries.
Key Points
- Fastest pace of cash inflow into gold funds since the pandemic
- Gold hitting record levels with a 19% increase this year
- Investors seeking protection against economic volatility
- Surge in gold ETF inflows due to fears over economy and stock markets
- Expectations of lower yields on other assets and concerns over tariffs driving the trend
Pros
- Record highs for gold
- Increased interest in safe haven assets
- Growing caution among investors
Cons
- Uncertainty in the market
- Potential impact on global growth