As the pause on US tariffs rumbles on, investors continue to brace for potential market disruption.
Against this troubling backdrop, gold and other precious metals have surged – with total net assets in gold exchange traded products (ETPs) climbing to $326bn globally.
Silver has also seen a surge in investment.
“The surge in precious metals this year has been driven by a mix of macro and policy forces,” said Monika Calay, director of manager research at Morningstar.
“Central banks, particularly China, have been aggressively buying gold to diversify away from the US dollar,” she added.
At the same time, expectations of Fed rate cuts, a weaker dollar, and fiscal uncertainty are driving renewed interest in gold as a hedge.
“Geopolitical tensions, safe haven flows, and growing tariff risks are further supporting demand across the precious metals space,” added Calay.
This boost in gold ETPs to $326 billion globally is “a clear sign that investors are once again turning to gold, driven by its long-standing reputation as an inflation hedge”, noted Calay.
“Gold’s 2025 inflows are being fuelled by macroeconomic and geopolitical uncertainty, central bank diversification, and investor anxiety around inflation risk,” she added.
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