Gold Price Hits Record Highs as Investors Flock to Safe Haven

The price of gold has surged to fresh record highs, reflecting strong demand from investors seeking stability amid heightened global uncertainty.

Gold climbed past US$3,550 per ounce (AU$5,400) this week, marking nearly a one-third gain in the past 12 months. A perfect storm of economic and geopolitical pressures are driving the rally, with no signs of demand easing.

Gold has historically been the go-to safe haven during periods of volatility. Unlike equities or currencies, it cannot be printed or diluted, making it a natural hedge against inflation and instability.

“Financial markets hate uncertainty, and in such scenarios, gold is usually the go-to asset for traders,” says Tim Waterer, Chief Market Analyst at KCM Trade.

Ongoing conflicts in Ukraine and Gaza, coupled with turbulent global trade conditions, have added to the case for gold as a portfolio anchor.

There are two primary ways investors are increasing exposure to gold:

• Physical bullion – bars, coins remain the most straightforward and trusted entry point. Unlike paper products, physical gold is real, tangible wealth you can hold outside of the financial system. At Ainslie, investors also have the option of tokenised bullion through the Gold Standard (AUS) Token, giving them the same direct ownership of gold held in Reserve Vault, but with the speed and flexibility of blockchain.
• Financial products – futures contracts, options, and ETFs are popular with traders and institutions who want quick exposure without handling the metal itself. But these products come with caveats: you don’t actually own the gold, they carry counterparty risk, and in times of stress, paper claims don’t offer the same protection as holding the metal directly.

One of the biggest drivers of recent price spikes has been political turbulence in the United States.

Former President Donald Trump’s “Liberation Day” tariffs earlier this year reignited fears of a global trade war. At the same time, his persistent criticism of the US Federal Reserve has unsettled markets, with investors bracing for unconventional policy shifts.

“If interest rates fall, gold becomes relatively more attractive because investors earn less elsewhere,” explains Kyle Rodda, Senior Market Analyst at Capital.com. “That dynamic has been front of mind for traders in recent months.”

Weakness in major currencies such as the British pound and Japanese yen has further contributed to the risk in gold demand. In countries where inflation erodes purchasing power, gold is increasingly seen as a shield against monetary instability.

“When your currency is losing value, gold is a natural asset to hold,” Waterer notes. “Unlike currencies, its supply is finite and resistant to dilution.”

Emerging markets from Turkey to Egypt are also turning to gold as a store of value. Even sovereign wealth managers are diversifying away from US Treasuries into bullion, reflecting growing caution over US assets.

For Australian investors, the surge in gold is magnified by exchange rates. With Aussie dollar under pressure, local buyers are paying record highs in AUD terms – prices nearing $5,500 spot. Yet the fundamental reasons to hold gold remain unchanged, that being diversification, protection against inflation, and long-term wealth preservation.

As global uncertainty deepens, gold’s role as a safe, stable, and borderless store of value has rarely been clearer.