Gold will stay firm amid uncertainty over US tariffs and other risks: Analysts

Its appeal as a safe haven remains as strong as ever among investors and central banks

- Angela Tan

Gold has retreated from recent record highs, but it still shines bright for investors and central banks rattled by uncertainty over US tariffs and other risks, say analysts.

Gold's longstanding appeal as a safe haven remains as strong as ever, not just among investors looking to protect their portfolios, but also with central banks facing a more turbulent world.

Buoyant demand for gold in Singapore mirrors the global view. Total bar and coin demand in the three months to the end of March shot up 35 per cent over the same period in 2024, marking the strongest quarter on record, said the World Gold Council (WGC).

Mr Shaokai Fan, head of Asia Pacific (ex-China) and global head of central banks at the WGC, said: "Gold, a traditional safe haven asset, continues to perform strongly with global demand reaching its highest first-quarter level since the first quarter of 2016."

Unsurprisingly, recent record prices have dampened affordability. Jewellery sales volume here fell 20 per cent in the first quarter of 2025 compared with a year earlier, while the value rose 9 per cent year on year.

US President Donald Trump's "Liberation Day" tariffs on major trading partners on April 2 jolted gold prices from below US$3,000 an ounce to almost US$3,500 by late April. Gold then took a beating in May following the de-escalation of the tariff war between US and China, with prices now hovering around US$3,300 an ounce.