Fashions come and go, including investments and attitudes towards money. Gold, it appears, has staying power, and recent events, including a slide in US equities, have supported the metal's price ascent.

Any doubts wealth advisors might have had about holding the “relic” of gold have been squashed for now as geopolitical events and associated market angst prevail.

Gold fetched $2,911 per ounce around 07:00 GMT in the UK today and has risen 35 per cent from a year earlier. By contrast, the US S&P 500 Index of stocks has risen 7.7 per cent in the 12 months to yesterday and is down 5.05 per cent since the start of January, wiping out the post-election bump. The MSCI World Index of developed countries’ stocks, in dollars, is down 2 per cent since the start of 2025. European equities with exposure to defence spending have risen, however.  

Wealth managers, such as UBS and Pictet in Switzerland, and DWS, the German firm (see examples here, here and here, respectively), have been positive on gold for its hedging qualities. In a flurry of notes today in the aftermath of stock market weakness and concerns about the direction of US economic policy, it seems that gold isn’t going to lose its shine. (See this 5 March market coverage, which also touches on gold.)

As attention turns to how asset allocation will be affected by geopolitical dramas, the episode puts a spotlight on gold’s traditional safe-haven status. This news service is also working on the investment implications – including for those using ESG approaches – of the heightened focus on defence spending.

“Gold continues to capitalise on the current market environment, where uncertainty surrounds US trade policy, exacerbating tensions between the US and its allies. After the tariffs recently imposed by the Trump administration on steel and aluminum imports, concerns about the impact of these policies on global economic growth have fuelled demand for gold as a safe-haven asset,” Rania Gule, senior market analyst at XS.com, said. 

Concerns that the risk of a US recession could be more likely, amid angry messages between the US, Canada and elsewhere over tariffs, have fed into the gold price. 

Gule said the “increased likelihood of an economic recession in the US has heightened investor concerns.” He argues that the summit in Jeddah, Saudi Arabia this week between the US and Ukraine will be a “key determinant for the precious metal's direction shortly, as gold benefits from the weakening US dollar and falling Treasury bond yields, solidifying its position as a safe-haven asset amidst unstable economic conditions.”

“Over time, in my view, concerns over global trade wars and geopolitical risks remain at the forefront of factors supporting gold's rise. Markets are on edge due to President Donald Trump’s trade policies, which contribute to heightened economic uncertainty,” he said.

Ruben Ferreira – head of Portuguese operations, FlowCommunity, an investment and members network, said in a note that any positive news from the summit this week will “weigh on gold.”

Geopolitical worries have been positive for gold in recent years, as a result of conflict in the Middle East, for example.

Last week, following news from German Chancellor-in-waiting Friedrich Merz that he intended to loosen the country’s debt restrictions and heavily boost defence spending, shares in companies linked to the sector, such as Rheinmetall, rose by double-digit percentages. In the UK, BAE Systems and France’s Thales, aircraft makers Dassault Aviation and Saab SAAB also climbed rapidly.