Alpari Report Gold Above $3K: The Appeal Of Safe Haven Assets In Volatile Times After 'Liberation Day'

In March, the spot price of gold rose above $3K where it has stayed, currently sitting above $3.4K. Apart from briefly exceeding this price a few days on 14 March and dropping again, this is the first time the asset has hit this record price.

A key reason for the high price of gold is the current economic and geopolitical instability. The broker Alpari has put together a report on gold and other safe-haven assets, and why investors turn to them during periods of instability.

One reason for gold's reliability as a safe haven asset is its scarcity, with over 90% of the world's gold already mined according to the World Gold Council. While it is only as recently as March that gold reached the landmark price of $3,000, it had already been reaching high prices in 2024. Central banks increasing their stocks of the precious metal was one key factor, with central banks around the world purchasing over 1,000 tonnes of gold last year.

Uncertainty around what the effects of President Trump's tariffs and other policies will be has caused volatility, sending U.S. investors in particular in search of safe havens. From December 2024 to 17 February, almost 20 million ounces of gold had been imported into the country, according to the World Gold Council.

Alpari's guide also includes an overview of how gold is priced and how it can be traded against different currencies. The worldwide benchmark is XAUUSD, or the price of 1 troy ounce gold quoted in U.S. dollars, but 'gold crosses' against currencies can also give traders the opportunity to make a profit based on differing gold prices around the world. In 2024, gold vs the U.S. dollar or XAUUSD climbed 27%. In contrast, due to the economic situation in Japan, with labour shortages and low interest rates, gold vs the yen or XAUJPY climbed by a much higher 42%.

About Alpari:

Alpari clients are individuals with an appetite to generate financial returns through self-directed trading. They are comfortable taking risks in order to generate returns and are willing to invest time to build the skills needed to succeed

Alpari's promise to these clients is to enable them to“access global trading opportunities securely”. They believe that individuals anywhere in the world should be able to access opportunities in financial markets – where local political environments do not support domestic regulation, they provide solutions for individuals to access our services offshore, but offering the same service standards and client protections as a regulated business.

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