Gold outshines Treasurys, yen and Swiss franc year-to-date

2025-06-17 05:08:01

“The main advantage of gold is that it is not the responsibility of anyone else,” said Nikos Cavalis, Managing Director of Metals Focus.

Sven Hop Photo alliance Gety pictures

Singapore – Gold has claimed a safe haven crown. With instant prices increased by 30 % so far in 2025, Bullion gains outperform other traditional safe havens such as Japanese yen, Swiss franc and US cabinet – forcing investors to rethink real safety in the face of financial sustainability concerns and wars waving on the horizon.

At the heart of the Gold’s attractiveness, freedom of government obligations, and market experts at the Asia Pacific Conference of CNBC annual minerals were assembled on Monday.

“The main advantage of gold is that it is not the responsibility of anyone else,” said Nikos Cavalis, Managing Director of Metals Focus. “When the investor owns treasury bonds, other sovereign bonds and even currencies, they ultimately buy the economy in question,” he said.

To assess the performance of other model safe havens since the beginning of the year: the dollar index, which measures the value of the green back against the currency basket, has weakened approximately 10 % per year until now. Safe haven currencies such as Japanese yen and Swiss franc strengthened about 8 % and 10 % against the dollar, respectively, in the same time period.

The return of the US government’s support for 10 years is about 19 less basis points per year so far. The return and prices are inversely transmitted in the bond market, which means decrease in returns the highest prices.

Gold prices spot a year to date

In contrast, gold prices were constantly up to several months. Spot Gold has gained about 30 % a year until now, and is currently trading at 3,403.09 dollars after its peak over $ 3500 in April. The gold request was paid through an atmosphere of instability and uncertainty, especially with recent developments in the Middle East, in addition to the excessive demand for safe havens.

“There is an increasing feeling not to ensure that the future of the US dollar and the US Treasury market will be so. I think this is getting greatly interested in alternative safe havens such as gold.”

Although the US dollar and treasury have historically served as a financial safety stronghold, cracks began to appear.

The American treasury faced a Selling highly slope in April After the “mutual” definitions of President Donald Trump. A later exit from the US debt that has been long history in May After MOODY was reduced in the credit rating of the United States, the Trump tax bill was another hit on Aminarins’s reputation for a long time as a safe haven with increasing fears of investors about financial discipline, as the United States was cut for 30 years over the switch 5 %.

The demand for American debt tools has recovered a little. However, confidence in American assets has been at risk by making volatile policies in the world’s largest economy.

Why does gold emerge?

The global head of institutional markets at the ABC refinery, and Nicholas Farabel, added that the financial position adopted by the United States and others remains restored, although fixed income bells about the growth of unexpected debts: “Gold is not affected as the origin of debt rates to the high GDP that affects other currencies.” He added that the financial position adopted by the United States Others, despite the alarm bells that appeared from the fixed income markets about the growth of uncooked debts.

American bonds and the only dollar were not a safe haven. The treasury was accompanied by a defeat in May, a sale from other major markets, as investors saved Japanese government bonds.

“Japan also has continuous structural issues,” said the World Gold Council. He explained that the Japanese yen was partially weak due to the interest rate difference.

The return on the Japanese government bond has increased for 10 years, 39 basis points since the beginning of 2025, indicating a decrease in demand. The Japanese yen was estimated at about 8 % against the dollar in the same time period.

Why does gold emerge among others is a large liquid market for one of them and also, it is political.

Shukai fan

World Gold Council

Van said that because the Bank of Japan did not raise prices as much as prices such as other central banks, it was a “inhibitor” for investors to move to the yen due to the differential interest rate.

Japan Central Bank The rate of its policy remains constant at 0.5 % For the second consecutive meeting in May, as concerns about Trump’s tariff had the economic view of the country. It was also held The rate of measurement at 0.5 % at its meeting in June on Tuesday In the face of high growth risk.

The Swiss franc, another safe traditional currency, has strengthened more than 10 % against Greenback since the beginning of the year.

However, the Swiss National Bank You may try to inhibit safe haven flowsVan said that Swiss Frank said less competitive.

Once again in March, the Swiss National Bank Determine the policy interest rate at 0.25 %. Swiss consumers decreased in May for the first time in more than four years, which led to some expectations for negative interest rates at the next policy meeting.

“The Swiss franc is still very exciting, but the problem [if] Bart Melik, head of the commodity strategy at TD Securities, said that Swiss have negative prices, and if I bought a franc, I will not get a lot of returns.

In this context, gold emerges from the origins of the other safe haven that it exported and linked by the owners of the government, according to CNBC.

“Why does gold emerge among others is a large liquid market for one and also, it is political,” Van said. “All other assets are released by government owners. So it is not the Fiat currency. Gold supplies are limited to natural restrictions, and I think this is what makes him stand out as a safe origin of the haven. It is not related to any specific political danger,” Van said.

Melik said that gold, unlike sovereign bonds or coins, does not carry gold any good risks. The strategy said: “Gold got a fundamental value. This means that I do not have to rely on a government or a special agent to implement my debt obligations to pay a voucher.”

Melik added that the extensive purchases of global banks of gold banks also enhance the attractiveness of safe haven. In 2024, central banks added a net 1044.6 tons of gold to their reserves, on the occasion The third year in a row The purchases exceeded the sign of 1000 tons.

The European Central Bank recently informed that gold exceeded the euro to become the second largest reserve asset, and constitutes about 20 % of global reserves at the end of 2024.