This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Investors Pile Into Gold, Seeking Safety From Market, Geopolitical Turbulence
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > Investors Pile Into Gold, Seeking Safety From Market, Geopolitical Turbulence
Markets

Investors Pile Into Gold, Seeking Safety From Market, Geopolitical Turbulence

Editorial Board Published January 25, 2022
Share
Investors Pile Into Gold, Seeking Safety From Market, Geopolitical Turbulence
SHARE

One asset holding up through the early 2022 market turmoil: gold. 

Rising geopolitical tensions in Europe and a slide in major U.S. stock indexes has sent investors rushing into the haven metal. On Friday, they poured a record net $1.6 billion into SPDR Gold Shares, GLD 0.32% the world’s largest physically backed gold exchange-traded fund, according to Dow Jones Market Data. When individuals buy shares of an ETF backed by physical gold, they are buying a stake in a trust. The ETF tracks the metal’s price since the asset held by that trust is metal.

Demand for gold climbed after tensions between Russia and Ukraine escalated last week. Investors often flock to gold during geopolitical turbulence, expecting it to hold value even when other assets struggle. 

“Gold thrives on uncertainty, and we’ve got that by ladle full,” said Rhona O’Connell, head of market analysis EMEA & Asia at StoneX. She estimates that gold will trade at an average of $1,900 a troy ounce in the second half of 2022.  

Gold prices have traded in a relatively narrow range in 2022, hovering below their November highs of $1,870.20 a troy ounce and 2020 record of $2,051.50. Bets the Federal Reserve will act aggressively to curb inflation helped pull the metal back from those levels, reducing the appeal of gold as protection against rising prices. Expectations for rate increases also have sent U.S. government bond yields higher, making them more competitive with gold, which pays no regular income. 

Most actively traded gold futures ended Tuesday up $10.80, or 0.6%, to $1852.50. 

Analysts said recent declines in the stock market also could support gold, with the S&P 500 and Nasdaq Composite recently wrapping up their worst week since March 2020. Investors also have battered other speculative bets, including bitcoin, which some cryptocurrency enthusiasts have touted as another form of inflation protection.  

“Gold has re-emerged as a safe haven and portfolio tail hedge given repricing and selloff in equities and crypto assets,” said Aakash Doshi, head of commodities for North America at Citi Research.

One potential new source of pressure for gold prices is this week’s Fed meeting, which investors plan to watch closely for clues on the path of interest-rate increases. Yields on two-year Treasury bonds, which typically climb when investors expect tighter central bank policy, have lately risen to their highest levels since February 2020. 

Some investors said expectations for Fed policy tightening were already weighing on gold, helping push it down to a 3.5% loss in 2021, its largest percentage decline since 2015. 

“Gold was the problem child last year, but it might be the star student this year,” said Robert Minter, director of ETF investment strategy at abrdn, which offers the Aberdeen Standard Physical Gold Shares ETF with net assets around $2.4 billion as of Dec. 31.

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the January 26, 2022, print edition as ‘Investors Pile Into Gold for Safety.’

TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Poll: College students value free speech but feel uneasy about it Poll: College students value free speech but feel uneasy about it
Next Article Berkshire Hathaway Will Host Annual Meeting in Person Berkshire Hathaway Will Host Annual Meeting in Person

Editor's Pick

California dwelling of lacking child’s mother and father searched; father has served time for youngster cruelty

California dwelling of lacking child’s mother and father searched; father has served time for youngster cruelty

San Bernardino County sheriff’s investigators on Sunday, Aug. 17, searched the house of the mother and father of the infant…

By Editorial Board 9 Min Read
Farmer Needs a Spouse: John Sansone and Claire Dinette Break up!
Farmer Needs a Spouse: John Sansone and Claire Dinette Break up!

Studying Time: 2 minutes It's sadly over for one more actuality tv…

4 Min Read
Meri Brown Hints at “Accusations, Heartbreak” in Instagram Publish
Meri Brown Hints at “Accusations, Heartbreak” in Instagram Publish

Studying Time: 3 minutes Meri Brown seems to be going via it…

5 Min Read

Oponion

Walters: Can new state rules resolve California’s insurance coverage disaster?

Walters: Can new state rules resolve California’s insurance coverage disaster?

There’s no legislation requiring California property house owners to hold…

December 18, 2024

Taco Bell so as to add hen nuggets to menu for a restricted time

Former CKE Eating places CEO Andy…

December 17, 2024

Not even Trump thinks this annoying Republican can win over Georgia

President Donald Trump could love Republican…

May 9, 2025

6 Greatest Dove Deodorants For Males: Clear, Contemporary Scents in 2024 | Fashion

Once you consider Dove deodorant, moreish…

September 19, 2024

Bay Space arts: 10 cool exhibits and concert events to catch this weekend

From two well timed stage exhibits…

September 18, 2024

You Might Also Like

Trump’s 401(ok) enlargement fuels ethereum growth
Markets

Trump’s 401(ok) enlargement fuels ethereum growth

FOX Enterprise' Gerri Willis has the main points on the funding technique on 'Varney & Co.' Practically $4 billion of…

4 Min Read
Cracker Barrel inventory plunges amid model makeover backlash
Markets

Cracker Barrel inventory plunges amid model makeover backlash

FOX Enterprise’ Jeff Flock reviews on Cracker Barrel unveiling a brand new brand as a part of a broader model…

3 Min Read
Intel will get  billion from Softbank as White Home mulls stake
Markets

Intel will get $2 billion from Softbank as White Home mulls stake

Former Chrysler and Dwelling Depot CEO Bob Nardelli praises President Donald Trump’s daring financial play because the White Home eyes…

5 Min Read
Intel will get  billion from Softbank as White Home mulls stake
Markets

White Home mulls 10% stake in Intel after CEO assembly

Former Chrysler and Dwelling Depot CEO Bob Nardelli praises President Donald Trump’s daring financial play because the White Home eyes…

4 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?