Gold has been the first safe haven in times of political and economic turmoil for many centuries. Its position is granted as a highly value -value -commodity that can be easily transferred and can be sold anywhere from a sense of safety when the rest of the assets are in chaos. But not everyone admires him, as the famous investor Warren Paft described the precious metal as a ‘sterile’ origin, and said in the 2011 message to the shareholders of ‘Berkshire Hathaway’ that ‘whoever has a gram of gold for centuries has only one gram.’ However, investors have used gold amid the increase in the trade war led by US President Donald Trump, the high levels of US debts that have expressed concern over the country’s public financial strength, and the increasing intervention in the independence of the US federal reserve. Gold -backed funds supported by gold in mid -September of this year have reached the highest level since 2022, according to data collected by “Bloomberg”. This question led to the precious metal incorporating new standard levels in 2025, which continued a strong turnout wave that started last year. Gold has entered the $ 3700 per grams level, which recorded a new historic level after the US Federal Reserve reduced interest rates in the United States. Usually, gold – which does not produce a periodic financial return to retain it – becomes more attractive in the low interest rate environment, as the cost of alternative opportunity to hold it against the assets that yields yields during the period of their possession. Why is gold a safe haven? For contemporary investors, this is mainly due to the stability of gold and its ease as more financial liquidity than any practical benefit from its use. Gold has a historical record of rise during periods of market tension. It is also seen as a hedging tool against inflation when the purchase power of the currencies is eroded. The fear of inflation is currently increasing with customs duties imposed by Trump on the import of America, threatening to raise prices by the global economy. The price of gold records a new record with betting on the interest reduction cycle. More details here are inflation in the United States, especially the focus of attention, with the pressure of Trump on the US Federal Reserve to lower interest rates in accordance with its agenda. Gold jumped in anticipation of the Central Bank’s decision to lower interest rates, and then continued to rise following the declaration of reduction by a quarter of a percentage point on September 17, although the momentum fell due to the US Federal Reserve’s dialect carefully about future discounts amid the poor labor market and the continued inflation. Golden position as a safe haven has been reinforced with a decline in confidence in other traditional ports – such as the US dollar and government bonds – due to the Trump commercial agenda, which also threatens the idea of ’US exceptional’. The ratio of the US dollar historically was the gold inversely linked to the US dollar. Since gold is valued in the US dollar, the weakness of the US currency makes it cheaper for other currencies. The US dollar dropped to the lowest level in July against the most important currencies in July, and remained poor until mid -September. Away from the markets, owning gold remains deeply rooted in Indian and Chinese cultures – the two largest markets for the mineral worldwide – where jewelry, alloys and other gold forms are inherited by generations as a symbol of wealth and safety. Indian families have about 25 thousand tonnes of gold, which is five times more than the US deposit warehouse known as “Fort Nox”. Read more: Goldman Sachs: Gold prices can in this case rise to $ 5,000 and buyers of material gold are known for their sensitivity to prices, but when financial investors return to gold, jewelry and alloy buyers to utilize opportunities, supporting their prices. Why did gold prices rise before Trump came to power? The major increase in gold prices since the beginning of 2024 has been partially driven by major purchases of central banks, especially in emerging markets that have tried to reduce their dependence on the US dollar, the global reserve currency. Gold helps diversify foreign exchange reserves and to protect economies from currency rear exit. Also read: Gold is more shiny if you are on the intersection of the data. Central banks have been buying clear gold for 15 years, but the pace of purchase has doubled after Russia’s invasion of Ukraine. With the freezing of the United States and its allies in the Russian Central Bank’s money, it appeared that the assets denominated in foreign currencies are vulnerable to sanctions. According to the World Gold Council, Central Banks bought more than a thousand tonnes of gold in 2024 for the third year in a row and he currently maintained about one fifth of the total gold withdrawn by history. However, the frequency of purchase was recently delayed due to high prices. What can the wave of gold climb stop? After a semi -continuing rise since the beginning of last year, the market can see a correction phase with investors taking profits. A significant reduction in Trump duties can also result in a peace agreement between Russia and Ukraine in prices. But central banks remain the most important pillar behind the luxury momentum, which means they can also harm if their reserves are reduced. Gold in state treasures: of the leader? .. Details here have so far not been indications that any large central bank plans to do so. The banks of advanced economies have only followed limited amounts of gold in recent decades, compared to the 1990s, when continuous sales during the contract led to more than a term. Due to the concerns about the impact of these unspeakable sales on the market, the first ‘golden agreement for central banks’ was signed in 1999, according to which the parties are committed to limiting their collective sales of metal. Does gold originally cause problems for investors? The possession of gold is not free because it is a significant origin that requires the payment costs of storage, protection and insurance. Investors who buy alloys and currencies also usually pay a higher price than the immediate price. Kirkels can appear in prices according to the geographical areas, which are exploited by traders by speculation agreements. This is what happened earlier in the year when the fear of the possibility that Trump imposed fees on gold imports to the rise in future gold contracts on the ‘comics’ in New York above the immediate prices in London significantly. It has launched a global race to transfer the actual metal to the United States of America to take advantage of the big difference and to earn hundreds of millions of dollars. Read more: The gap of the golden price exposed on the New York Stock Exchange after the shock of the fees, but this trade suddenly stopped in April after the Trump administration showed that gold would be released from the fees. The situation raised temporary concerns in August in August when the US Customs and Protection Authority said that some gold alloys were subject to “Trump” before the latter intervened, emphasizing that gold did not face the import tax. The transfer of gold is usually relatively easy as it is loaded into commercial aircraft from the attention of passengers. But the process is not quite simple, due to the different specifications of the weights in the global markets: In London, the standard is a 400 -stalages, while in “Comx” contracts, allocations with a weight of 100 ounces or one kilograms are delivered. This means that the gold heading to the “comic book” warehouses must first go through refineries in Switzerland to make it disappear and throw it to the required dimensions, before transferring to the United States, which creates bottlenecks when there is a sudden impulse to redistribute the stock.
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