Gold-backed ETFs have seen their largest net inflows since 2022, supporting prices as investors seek safe-haven assets amidst economic uncertainty. The metal’s inverse correlation with the US Dollar and US Treasuries makes it a popular choice for diversifying portfolios.
A weaker US Dollar tends to push Gold prices up, while a strong Dollar keeps them controlled. Geopolitical instability or fears of a deep recession can quickly escalate Gold prices due to its safe-haven status. With lower interest rates, Gold tends to rise as a yield-less asset.
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In recent years, central banks have increased their Gold reserves, with China, India, and Turkey among the emerging economies quickly increasing theirs. This trend suggests that investors may be seeking safer assets as they navigate uncertain economic conditions.
Source: https://www.fxstreet.com/news/gold-price-reaches-record-high-as-us-dollar-weakens-yields-drop-202502242017