Gold gatherings where they re -evaluate the American treasury and the dollar

One kilogram of gold bars in the ABC refinery, run by Pallion, in Sydney, Australia, on Thursday, April 17, 2025.

Brendon Thorne Bloomberg Gety pictures

Gold prices were in a state of tearing with commercial turmoil that prompted investors to safe haven, while competing assets such as the American Treasury and the dollar fell.

This is linked to the seismic shift in the American trade policy during President Donald Trump, and has “entered the vacuum” as a origin for safe choice in the market, said the director of mining and energy commodities research in the Commonwealth.

Dar added: “What makes this last trip to safe – unique unique demand is that the US dollar and the treasury have been sold as a safe appeal from these American assets has decreased.”

Gold prices scaling the highest new levels and reached $ 3500 an ounce on Tuesday, with more analysts expected that prices will gather more. JP Morgan expects the yellow metal to reach $ 4000 by the second quarter of 2026 and an average of $ 3,675 an ounce by the fourth quarter of 2025.

Gold VIS-Vis Dollar Futures Prices last year

On the contrary, the US Treasury has witnessed a sale in recent weeks, as the return for 30 years at the highest level since November 2023 earlier this month. Meanwhile, the US dollar index was slipping, and weakening 8 % so far this year, as Lseg data showed.

While the Treasury’s return for 30 years has gained about two western points so far this year, the rise within a week after Trump has announced mutual definitions from 30 basis points-the standard return on 10 years also increases by 30 basis points. Meanwhile, instant gold prices have increased by 25 % so far this year, according to Data Lseg data.

While the returns of US Treasury’s revenues have long decreased from the highlands that were struck earlier this month, the dollar may strengthen in a marginal manner as Trump retracted his comments about the launch of the Federal Reserve Chairman Jerome Powell, which is the situation of American assets between investors already.

“Although this is far from the story of” the death of the US dollar “, it is fair to say that confidence in the United States, the main assets, its main assets, the US dollar and the treasury, have diminished.

Why the gold rush

It seems that the traditional reverse relationship between the yield of the treasury and gold has collapsed. Usually, when the returns are higher, the alloys become less attractive due to the high cost of keeping gold because they do not pay the benefit.

Michael Ryan, a lecturer at the College of Accounting, Finance and Economics at the University of Wikato, said the quality of inflation in Gold makes it “private”.

Ryan said the customs tariff is expected to raise inflation in the United States, which means high interest rates, which in turn pressure the treasury secretary.

He added, “Gold, however, is historically seen as a hedge of inflation, which may explain its preference-so it may be the properties of moving the inflationary inflation of gold that make it” distinctive. “

Unlike government currencies or bonds, gold does not carry credit risks and is not related to the economic or political path of one nation.

Analysts told CNBC that there is another factor in the collapse of the traditional relationship between gold and the Secretary of the Treasury is the contradictory faith in America and the “American exceptional” novel.

“There is confidence that is declining in American assets due to economic and geopolitical uncertainty,” said Sony Kumari, a strategic commodity expert in Anz.

The markets are widely considered to be the confidential war as a wrong policy, and Gold’s independence from any monetary and financial policy has strengthened its attractiveness.

“Unlike currencies or government bonds, gold does not carry credit risks and is not related to the economic or political path of one nation,” said Alexander Zomf, the chief of precious metal merchant at Heerius. This is especially closely related to times when confidence in traditional financial tools is frequent.

In addition to Gold’s Luster is the fading call to the US dollar. The dollar in general makes green goods, including gold, is more attractive to other currencies.

Diversification

Elie Lee, the largest investment strategy in a bank in Singapore, said that the central banks in the emerging market, which were suffering from weight loss in gold compared to their advanced market counterparts, turned into the yellow metal and are likely to remain strong buyers because they vary away from their dollar reserve holders.

Sell the last dollar Discussions on the cancellation of global vanishing sparkedAnd the question of Greenback as a backup currency in the world.

Gold has been presented as a Potential main reserve currency Several times.

CBA said: “The two countries realized that gold was a potential hedge against frozen currency reserves in the United States because of the non -alliance with American policy,” said CBA.

Although the sale of the dollar was useful for gold, it is still difficult to see a future with a material shift away from Greenback, given the costs of transportation and the storage of gold-the alloys are the assets that the non-founding pay also limits its attractiveness.

In addition, although there was little re -evaluating the state of the US Treasury Security Ministry, it is still difficult to finally replace it with how the “most liquid market in the world” is, the Franklin portfolio manager told investors Todd Brighton.