Gold ETFs Surge as Investors Seek Safe-Haven Assets Amid Dollar Weakness
Gold ETFs are experiencing explosive growth as the metal solidifies its position as a premier safe-haven asset. Global Gold ETF holdings surged by 27 tonnes in a single day—the largest daily increase since January 2022—driving a 0.9% price spike. This demand doubles the year's daily average, signaling heightened investor appetite for stability.
The rally coincides with a weakening US dollar, exacerbated by anticipated Trump-era tariffs and shifting economic policies. Market analysts interpret this as a structural shift rather than a fleeting trend, with gold ETFs emerging as a critical hedge against currency volatility.
While the report focuses on precious metals, cryptocurrency practitioners note parallel dynamics in digital assets like BTC and ETH, which often exhibit inverse correlations to traditional markets. The gold surge may foreshadow increased institutional interest in alternative stores of value, including crypto.