"The short answer is that gold is acting as a haven and a store of value, a role it's played for thousands of years, since the kingdom of Lydia started churning out gold coins in the sixth century BC. Investors can be a jumpy lot, and there are plenty of reasons to shift money out of riskier assets today from fears of economic slowdown to rising geopolitical tensions between Russia and Nato."
"As well as traditional valuation drivers such as interest rates, the dollar and inflation, concerns over Donald Trump's attacks on the US central bank, his trade war, and his tax and spending plans are also pushing gold higher, analysts say. Gold's role as a store of value comes, in part, from its scarcity. According to the World Gold Council, if all the gold ever mined was gathered into a single cube, it would measure approximately 22 metres on each side."
Gold has surged to record highs in 2025 and is on track for its strongest annual performance since 1979. The metal is functioning as a haven and store of value as investors shift away from risk amid fears of economic slowdown and rising geopolitical tensions between Russia and Nato. Traditional valuation drivers — interest rates, the dollar, and inflation — combine with concerns about Donald Trump's attacks on the US central bank, trade policies, and fiscal plans to support the rally. Gold's scarcity and modest annual supply growth (about 1.7%) underpin its appeal compared with industrial metals.
Read at www.theguardian.com
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