Net inflow exceeded 19.2 billion USD in a single quarter! Western investors are also rushing to gold

Trump's tariff threat triggers a rush to safe havens, investors flock to the gold market. As U.S. President Trump is about to announce a new round of tariff policies, risk aversion sentiment has sharply increased. On Tuesday, gold prices briefly surged to a historic high of $3,148.88 per ounce, marking an increase of over 17% this year, including the strongest quarterly performance since 1986. Meanwhile, gold funds are rapidly "sucking in" capital at the fastest pace since the COVID-19 pandemic. According to Standard Chartered Bank, investors have injected over $19.2 billion into gold ETFs in the first quarter, setting a record for the largest inflow since the pandemic began (in dollar terms). The bank's precious metals analyst Suki Cooper pointed out that the recovery of ETFs is the most significant shift in gold dynamics in recent weeks; expectations of lower yields on other assets, combined with concerns about how tariffs might impact inflation and growth, have contributed to the recent capital flows. A recent Bank of America fund manager survey also showed that cash in investors' portfolios (seen as a measure of cautious sentiment) experienced the largest monthly increase in five years. Krishan Gopaul, senior analyst at the World Gold Council, stated: "Uncertainty is one of the main factors driving renewed interest in gold. There is a prevailing risk-averse sentiment in the market." Defensive stocks, U.S. Treasuries, and German bonds attract funds as safe havens Due to concerns about an economic recession, investors are also flocking to the European and American bond markets. On Tuesday, the yield on the 10-year U.S. Treasury bond fell to 4.13%, close to this year's lowest level. The yield on German bonds, seen as a safe-haven asset in the Eurozone, rose significantly last month due to the country's large-scale fiscal spending plans, but fell back below 2.7% this week for the first time since early March. Sunil Krishnan, head of multi-asset at Aviva Investors, commented: "Given the potential slowdown in the U.S. economy following the implementation of tariff policies, government bonds appear to be an attractive hedging tool. Given that gold prices have already risen significantly, it is more challenging to increase gold allocation at this time." In the stock market, defensive stocks, which are considered less affected by economic growth, have performed well In the past month, healthcare stocks such as UnitedHealth and HCA Healthcare have risen over 10%, while the broader S&P 500 index has fallen about 5%. Pete Drewienkiewicz, Chief Investment Officer of Global Assets at consulting firm Redington, stated: “Currently, our screening shows almost no attractive assets. Therefore, it is not surprising that people are turning to a more defensive position after the market has experienced such a strong rally.” Risk Warning and Disclaimer The market is risky, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at one's own risk