gold

Gold is commonly regarded as a safe-haven asset that investors purchase during periods of financial or geopolitical turmoil.

National central banks can diversify foreign-exchange reserves by increasing allocations to gold, and large central-bank purchases can materially influence gold prices because of their substantial buying capacity.

U.S. Treasury securities have historically been regarded as a primary global safe asset, while gold serves as an alternative safe-haven asset that is not denominated in a fiat currency.

Investors sometimes seek assets that are not tied to fiat currencies, such as gold and bitcoin, to hedge against risks like currency depreciation, sovereign debt concerns, and economic or policy uncertainty.

Gold is commonly viewed as a "safe-haven" asset that investors often buy during periods of economic or geopolitical uncertainty.

Gold prices tend to rise when the U.S. dollar weakens.

Physical gold does not pay dividends or interest and investing in physical gold typically incurs storage, security, and insurance costs, so returns depend on selling the metal at a higher price than the purchase price.

A commonly cited portfolio allocation guideline is to limit exposure to gold and gold-related investments to a maximum of about 10% of an investor's overall portfolio to avoid crowding out income-producing assets.

Inflationary pressures and geopolitical instability are macroeconomic and geopolitical factors that are commonly associated with upward pressure on gold prices.

Investors commonly use gold as a safe-haven asset during periods of economic turmoil and as a hedge against rising inflation.

Lower nominal interest rates reduce the opportunity cost of holding non-yielding assets like gold, making gold relatively more attractive compared with interest-bearing government bonds such as Treasuries.

Purchases of gold by central banks tend to increase during periods of heightened geopolitical tensions, supporting overall gold demand.