Gold Rush: Investors Fleeing to Safe Havens After Trump's Tariff Bombshell

Analysts Say More Funds Being Shifted to Gold, Cash, REITs, and Govt Bonds Amid Market Volatility

- Grace Leong

Investors in Singapore are shifting more funds to defensive assets such as gold, cash, government bonds, and real estate investment trusts (REITs) in response to US President Donald Trump's latest tariff announcement, analysts say.

Mr. Trump's April 2 decision to impose at least 10 percent tariffs on all exporters to the US—friends and foes alike—have pushed investors towards safer options amid market volatility.

Dr. Chua Hak Bin, co-head of macro research at Maybank, noted that the shift away from riskier assets such as US tech stocks had already started in March and will likely continue, given further downside risk to the US economy.

On the other hand, defensive assets, including gold, US Treasury bills, and Singapore government bonds, have seen a rally, he said, while utilities and telco stocks—known for their resilience during economic downturns—are likely to draw more interest.

The most notable shift has been to gold, which hit a fresh record high of above US$3,160 an ounce on April 2.

Gold remains a key hedge against geopolitical and inflation risks, said Mr. Hartmut Issel, head of Asia-Pacific equities and credit at UBS Global Wealth Management.