FEAR & GREED | Business News Q+A: Why is gold still a safe haven asset?
Sep 2, 2025
Evan Lucas, an economic futurist and host of Money News on Nine Radio, shares his insights on the ongoing fascination with gold as a safe haven asset. He dives into the factors driving gold prices past $3,500, including geopolitical tensions and economic uncertainties. The discussion highlights India’s gold consumption amid changing trade dynamics and contrasts gold's stability with the risks of other investments like cryptocurrencies. Lucas also explores how political commentary influences gold prices and what the future holds for this timeless asset.
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Gold's Rally Is Geopolitics And Politics Driven
- Gold's rally began during COVID and has been fueled by geopolitics and US political risk.
- Attacks on institutions and the US bond market by President Trump have pushed investors toward gold as a safe haven.
Gold Tracks US Treasuries And Real Rates
- Gold moves closely with US 10-year Treasury dynamics and real rates.
- Undermining confidence in US sovereign debt pushes investors into gold.
India's Gold Buying Responds To Trade Pressure
- India has become the largest physical gold consumer and is buying gold on paper amid rupee and tariff pressures.
- Protectionist measures and trade friction drive Indians to use gold as a hedge.