Gold has firmly reasserted its position as a premier safe haven asset in 2025, outperforming traditional refuges such as US Treasurys, the Japanese yen, and the Swiss franc, CNBC reports.
Spot prices for gold have surged approximately 30% year-to-date, driven by a combination of market instability, fiscal concerns, and shifting investor sentiment, according to experts at the Asia Pacific Precious Metals Conference held in Singapore.
At the heart of gold’s appeal is its independence from government obligations. Unlike sovereign bonds or fiat currencies, gold carries no counterparty risk and is not tied to any country’s fiscal policy or debt profile.
“Gold’s key advantage is that it is no one else’s liability,” said Nikos Kavalis, Managing Director at Metals Focus.
This characteristic has become increasingly attractive to investors concerned about growing fiscal deficits and volatility in major economies.
The World Gold Council’s Global Head of Central Banks, Shaokai Fan, echoed this sentiment, stating, “There’s a growing sense of just not being sure what the future of the US dollar and US Treasury market is going to be.”
While the Swiss franc and Japanese yen have appreciated 10% and 8% respectively against the US dollar this year, they have still lagged behind gold in performance. Additionally, interest rate policies in both countries have muted investor enthusiasm. The Swiss National Bank set its policy rate at just 0.25%, and some analysts forecast the possibility of negative rates. Meanwhile, the Bank of Japan has held its rate steady at 0.5%, despite global rate hikes elsewhere, limiting the yen’s competitiveness.
In the US, Treasurys—once considered the cornerstone of global financial safety—have seen reduced demand. A sharp selloff in April followed former President Trump’s tariff announcements, and a subsequent downgrade of the US credit rating by Moody’s further weakened investor confidence. Though yields on 10-year Treasurys have dipped slightly, bond market volatility has left some investors cautious.
Gold’s resilience in 2025 has been further reinforced by strong central bank demand. According to the World Gold Council, global central banks purchased over 1,000 tons of gold in 2024 for the third consecutive year. The European Central Bank recently reported that gold surpassed the euro to become the second-largest reserve asset globally.
“Gold is apolitical and benefits from natural scarcity,” Fan said. “It isn’t subject to the same political or policy-driven risks that affect fiat currencies or sovereign bonds.”
Analysts also point to gold’s liquidity and intrinsic value as additional reasons for its appeal.
“Gold’s got intrinsic value,” said Bart Melek, head of commodity strategy at TD Securities. “I don’t have to rely on a government or a private agent to execute debt obligations.”
