Gold Breaks $3,400: Why Safe Haven Assets Are Back in the Spotlight
Following President Trump’s 2025 global tariff announcement, stock markets across the world plummeted, with investors seeking refuge from escalating trade tensions and economic uncertainty. As equities falter, safe haven assets have come into sharp focus.
Safe haven assets—such as gold, defensive stocks, AAA-rated government bonds, and select currencies like the Swiss franc and Japanese yen—are known for preserving value during market downturns. Their resilience stems from characteristics like inelastic demand, limited supply, and low correlation to the broader economy. Traders often use them to hedge risk or diversify their portfolios.
Gold remains a standout, buoyed by central bank demand and persistent inflation concerns. Defensive stocks in sectors like consumer staples and healthcare also offer stability, while ETFs tracking these sectors present a diversified way to access them. Meanwhile, government bonds and strong currencies are valued for their perceived safety and consistent demand during crises.
This article explores how, when, and why traders turn to these assets—and offers key tips for navigating safe haven trading strategies in volatile conditions.
👉 Discover key tips for navigating safe haven trading strategies in volatile conditions. Click to learn more.