portfolio diversification

Gold Surge Continues Amid Rising Economic and Geopolitical Fears; Target USD 3,200/oz

• Gold prices rallied just shy of 10% in March, surpassing USD 3,100/oz to extend the year-to-date gains to 19% (after rising 27% in 2024).

• A surge in investment demand is behind the latest moves, with comments by US President Donald Trump and Elon Musk, as well as weak US consumer survey data, amplifying market fears as we approach the 2 April tariff announcements. The acceleration of ETF buying marks a sharp reversal from the outflows of this time last year. 

Does borrowing make sense in 2025?

US Treasury yields have been on a rollercoaster this year. But we expect the appeal of borrowing strategies to rise as the global rate-cutting cycle continues. Borrowing can form part of a financial plan, subject to awareness of its risks.  

How can investors deal with geopolitical risks?

Diplomatic efforts have intensified to stop the fighting between both Russia and Ukraine as well as Israel and Hamas. But a durable resolution to both conflicts will not be easy to achieve. The public disagreement in the White House between President Trump and his Ukrainian counterpart underlined the challenges.

What does President Trump mean for markets?

We do not expect large, broad, and sustained US tariffs, but repeated threats of higher tariffs on key trading partners and a lack of policy visibility could weigh on business investment and hiring even if they are never imposed. More volatile markets require an increased focus on portfolio diversification and hedging approaches.