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International Business Times
28-05-2025
- Business
- International Business Times
Why Gold is Becoming an Essential Component in Modern Investment Strategies
Investors have traditionally turned to gold because of its reputation for stability. In seasons where conventional markets trend toward instability, investor interest in gold increases. The uncertainty in today's economy is driving investors toward gold. "Investors using gold to enhance the diversity in their portfolios have seen better than expected performance over the past few years," shares Jai Bifulco, CCO of Kinesis Money. "It has provided all the benefits that it has shown in the past, as well as stepping in to mitigate the losses caused by emerging issues such as central banks becoming increasingly cautious about engaging with bond markets." Bifulco's diverse commercial and operational experience spans the FinTech, precious metals, mining, financial services, investment, and trading spaces. As a founding member of Kinesis Money, he plays a leading role in driving the adoption of a truly ethical, global monetary system, which he believes will shape the future of precious metals and the monetary space. "The shifting dynamics in today's markets position gold as an essential component in modern investment strategies," Bifulco adds. "It checks all the boxes for investors who are increasingly looking for ways to preserve and grow their wealth in a financial environment that has become more and more difficult to predict." Gold remains a reliable hedge against inflation After experiencing a reprieve from the high rates triggered by the COVID-19 pandemic, investors may soon need to grapple with the effects of elevated inflation once again. The typical response to such economic pressures is to add more gold to portfolios. "Investors look to gold to offset the impact of inflation because it is typically inversely correlated to the US dollar," Bifulco explains. "As inflation causes the dollar index to decline, the value of gold is pushed higher." Two factors drive gold's inverse correlation to fiat currencies. First, its supply is limited since producing new gold bullion reserves is a lengthy process. Secondly, the value of gold is not tied to a specific economic policy, which limits the control federal governments can have on the gold market. New investment tools make gold more accessible and flexible Gold has become a more common element of investing strategies as modern investment tools have made it more accessible and flexible. Whereas obtaining gold once required investors to pay substantial sums and deal with the inconvenience of storing physical assets, today's investing landscape furnishes investors with easier and more cost-effective options for adding gold to their portfolios. Gold Exchange-Traded Funds (ETFs), for example, allow investors to buy shares of funds that hold physical gold bullion, gold futures contracts, or stocks of gold mining companies. The shares can then be traded on stock exchanges, just like company stocks are bought and sold. Platforms that allow investors to digitize their gold holdings are also emerging, making adding gold to an investment portfolio more convenient and secure. The platforms provide real-time updates on portfolio values and streamline the process of buying and selling gold. "The most advanced digital platforms allow investors to not only store gold but also earn a yield from it," Bifulco explains. "This enhanced gold's utility as a growth asset." The International Monetary Fund says the global economy is entering a new era marked by "epistemic uncertainty and policy unpredictability." As investors navigate the transition, gold has the potential to play a key role in strategies that provide stability, flexibility, and profitability.
Zawya
30-04-2025
- Business
- Zawya
Gold extends fall as dollar gains, trade tensions ease
Gold prices fell for the second straight session on Wednesday, hurt by a stronger dollar and signs of de-escalation in U.S.-China trade tensions, while focus was also on a slew of U.S. economic data due this week. Spot gold was down 1.3% at $3,274.10 an ounce, as of 1017 GMT. However, bullion was on track to log its fourth consecutive monthly gain, up nearly 5% so far in April. U.S. gold futures slipped 1.5% to $3,283.50. "The market is currently experiencing high volatility as the two-way flows compete. In short, it looks as if gold may be entering a well-earned period of consolidation," said Ross Norman, an independent analyst. The dollar index rose 0.2% against its rivals, making bullion more expensive for other currency holders. "Gold prices are lower in more stable conditions as the market took stock of what appeared to be a de-escalation of the U.S.-led trade war that has rattled the financial markets in recent weeks," Frank Watson, market analyst at Kinesis Money, said in a note. "That said, gold's reluctance to move much lower can be taken as a sign that the financial markets are still on edge amid uncertainty over U.S. trade policies and their ultimate impact on the wider global economy." U.S. President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday, while his trade team touted its first deal with a foreign trading partner. Bullion, a safeguard against political and financial turmoil, last soared to a record high of $3,500.05 per ounce on April 22 as investors sought refuge from global economic turmoil. Investors will turn their focus to a series of U.S. economic data, including U.S. personal consumption expenditures (PCE) later in the day and the non-farm payrolls report on Friday, that could shed more light on the Federal Reserve's interest rate outlook. Elsewhere, spot silver dipped 2.1% to $32.27 an ounce, platinum fell 1.1% to $966.86 and palladium lost 0.6% to $929.44.
Observer
11-04-2025
- Business
- Observer
Why gold price surges to all-time high
Why do investors flock to gold when economic times turn tough? As the precious metal reaches record highs, AFP explains why it remains such a trusted lifeline. The trading turmoil unleashed by US President Donald Trump's tariffs has triggered a record run for gold, widely viewed as a safe-haven investment. On Friday, it struck an all-time high of $3227.51 an ounce in trading, handing the commodity a gain of more than 20 percent since the start of the year. - Additional Trump benefit - "So far, precious metals bullion is exempt from US tariffs and this is probably because they are not seen as core industrial products," Frank Watson, senior metals analyst at trading platform Kinesis Money, told AFP. The aim of Trump's tariffs is to support American output and reduce the US trade deficit, which taxing gold would fail to achieve. After gold struck a record high at the start of April when Trump unleashed his reciprocal tariffs, investors sold off the metal to gain necessary liquidity amid tumbling stock markets. This caused gold to weaken briefly before rebounding. The metal meanwhile avoided fresh declines after Trump on Wednesday surprisingly paused his tariffs for dozens of countries, except China. - Dollar retreat - The US currency has retreated strongly against main rivals in the wake of Trump's tariffs, further boosting gold's attractiveness. Gold is "an important risk-management asset held by entities including central banks and financial institutions as well as retail investors", said Watson. Markets are concerned about the impact of a global trade war on growth and are betting that the US Federal Reserve will announce further cuts to interest rates to support activity in the world's biggest economy. This is despite the tariffs threatening a fresh spike to inflation, which ordinarily would see central banks looking to hike interest rates. Such expectations of lower borrowing costs are adding to the pressure on the dollar as well as for US government bonds, which are losing some of their safe-haven status. - Rare tangible asset - Gold profits also from the fact that it is a rare and tangible asset. While the majority of people will never own a gold bar, they can get their hands on a piece of gold jewellery. "People want a tangible asset that they can own," said John Reade, a strategist at the World Gold Council. In an interview with AFP, he added that gold has proven to be an asset investors and savers seek when losing confidence in governments and banks, even if it means earning no dividends or interest on their investment. "Gold is incredibly rare and doesn't corrode, making it the ultimate long-term store of value," noted Watson. - Central bank craze - Gold is prized by central banks, which contribute to inflating its price by filling vaults with bullion to hedge against hardship, stabilise currencies, and use as collateral for loans and transactions. In 2024, global central banks together added more than 1,000 tonnes of gold to their reserves for the third year running, according to the World Gold Council. "This move was triggered by the invasion of Ukraine and the subsequent confiscation of Russian reserves," according to Charlie Morris, an analyst at investment research group ByteTree. Following Moscow's invasion of Ukraine in February 2022, the Russian central bank's foreign exchange reserves held abroad were frozen under international sanctions. The war in Ukraine, followed by the conflict in Gaza, has exacerbated geopolitical uncertainties, further increasing gold's appeal. Investor appetite for gold has been robust. Global gold-backed ETFs saw massive inflows of US$21 billion (226 tonnes) in the first quarter of 2025, the second-highest quarterly dollar inflow ever recorded, according to market data. Gold remains my largest holding, the outlook looks bullish over the next 100 days. The combination of tariff-induced inflation risks and ongoing geopolitical uncertainty provides a robust foundation for gold prices. While the immediate pause of some tariffs brought some calm to wider markets, the underlying drivers that propelled gold higher– including persistent geopolitical uncertainty focused on US-China trade tariffs, the potential inflationary pressures from tariffs, and questions around.
Observer
11-04-2025
- Business
- Observer
Why is gold reaching record heights?
Why do investors flock to gold when economic times turn tough? As the precious metal reaches record highs AFP explains why it remains such a trusted lifeline. The trading turmoil unleashed by US President Donald Trump's tariffs has triggered a record run for gold, widely viewed as a safe-haven investment. On Friday it struck an all-time high of $3227.51 an ounce in trading, handing the commodity a gain of more than 20 per cent since the start of the year. Additional Trump benefit "So far, precious metals bullion is exempt from US tariffs and this is probably because they are not seen as core industrial products," Frank Watson, senior metals analyst at trading platform Kinesis Money, said. The aim of Trump's tariffs is to support American output and reduce the US trade deficit, which taxing gold would fail to achieve. After gold struck a record high at the start of April when Trump unleashed his reciprocal tariffs, investors sold off the metal to gain necessary liquidity amid tumbling stock markets. This caused gold to weaken briefly before rebounding. The metal meanwhile avoided fresh declines after Trump on Wednesday surprisingly paused his tariffs for dozens of countries, with the exception of China. Dollar retreat The US currency has retreated strongly against main rivals in the wake of Trump's tariffs, further boosting gold's attractiveness. Gold is "an important risk-management asset held by entities including central banks and financial institutions as well as retail investors", said Watson. Markets are concerned about the impact of a global trade war on growth and is betting that the US Federal Reserve will announce further cuts to interest rates to support activity in the world's biggest economy. This despite the tariffs threatening a fresh spike to inflation, which ordinarily would see central banks looking to hike interest rates. Such expectations of lower borrowing costs are adding to the pressure on the dollar as well as for US government bonds, which are losing some of their safe-haven status. Rare tangible asset Gold profits also from the fact it is a rare and tangible asset. While the majority of people will never own a gold bar they are able to get their hands on a piece of gold jewellery. "People want a tangible asset that they can own," said John Reade, a strategist at the World Gold Council. In an interview with AFP, he added that gold has proven to be an asset investors and savers seek when losing confidence in governments and banks, even if it means earning no dividends or interest on their investment. "Gold is incredibly rare and doesn't corrode, making it the ultimate long-term store of value," noted Watson. Central bank craze Gold is prized by central banks, which contribute to inflating its price by filling vaults with bullion to hedge against hardship, stabilise currencies and to use as collateral for loans and transactions. In 2024, global central banks together added more than 1,000 tonnes of gold to their reserves for the third year running, according to the World Gold Council. "This move was triggered by the war of Ukraine and the subsequent confiscation of Russian reserves," according to Charlie Morris, an analyst at investment research group ByteTree. Following Moscow's attack of Ukraine in February 2022, the Russian central bank's foreign exchange reserves held abroad were frozen under international sanctions. The war in Ukraine, followed by the conflict in Gaza, has exacerbated geopolitical uncertainties, further increasing gold's appeal. — AFP
Reuters
07-03-2025
- Business
- Reuters
China's central bank ups gold reserves for fourth straight month in February
BEIJING/LONDON, March 7 (Reuters) - China's gold reserves rose to 73.61 million fine troy ounces at the end of February from 73.45 million at the end of January, as the central bank kept buying the precious metal for a fourth straight month. China's gold reserves were valued at $208.64 billion at the end of last month, up from $206.53 billion at the end of January, central bank data showed on Friday. "The PBOC's purchases are an important factor underpinning gold, so a continuation of its buying in February could help to build further strength behind the gold price," said Frank Watson, market analyst at Kinesis Money. U.S. import tariff fears, their potential effect on global economic growth and inflation as well as geopolitical uncertainty drove gold to a record high on February 24. Bullion rose by 27% in 2024, the most in 14 years. Washington has so far added an extra 20 percentage points on existing tariffs for Chinese goods, with the latest 10-point increment enforced on Tuesday, drawing Beijing's retaliation. China unlocked more fiscal stimulus on Wednesday, promising greater efforts to support consumption and cushion the impact of an escalating trade war with the U.S, while China's state planner said the country would accelerate the annual stockpiling of strategic commodities. Global central banks, a major source of gold demand, bought more than 1,000 metric tons of the metal for the third year in a row in 2024 and are expected to remain active buyers in 2025, according to the World Gold Council. "Unlike investors, central banks are relatively price insensitive to gold and tend to buy as part of a restructuring of their reserve holdings," Watson said. "Buying by the PBOC and other central banks has been a key factor for gold's very strong price performance over the last two years. That said, other factors, like inflation, interest rates, geopolitical events and investor interest in safe haven assets will continue to shape the gold price." In 2024, the PBOC took a six-month pause after its 18-month-long gold purchasing spree before resuming the gold buying in November.
