The US tariff mayhem continues to weaken global markets, as uncertainty spread by the trade war narratives continues to pose global volatility. This new development has compelled investors to explore new assets, new dominions that could help them safeguard their assets. In this wake, BlackRock’s Vivek Paul has come up with a new asset, which, in his opinion, is the new attractive element beating the traditional finance leaders like the US dollar and bonds when it comes to lucrative returns amid weak economic prosperity.
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BlackRock Says This Asset Is Changing Investment Narratives
Per BlackRock’s Vivek Paul, the rising universe spurred by the US tariff regime and global market mayhem is pushing gold to hit a new price high. This asset is now attractive to investors like moths, emerging as a solid safe haven amid the stark market volatility.
Paul, the head of portfolio research at BlackRock Investments, later shared how the current environment is conducive to gold’s growth. He later added how the yellow metal is beating the likes of the US dollar and bonds, emerging as a stable asset capable of safeguarding investments in a long-term perspective.
“Part of the traction for gold in the near term is that other diversifiers like bonds and the dollar cannot play the safe-haven role. Dollar, since April, has not been able to play the safe-haven role,” Paul noted.
A Global Diversifier
Paul touted “gold” as a global diversifier, claiming that the asset has lately emerged as a promising element to explore in recent times.
“Looking at a longer horizon is even more difficult because there are parts that are different from one another. There are outcomes that may happen in five to ten years that come from remarkably different worldviews,” he shared.
When comparing gold with traditional safe haven alternatives such as US dollars and bonds, Paul picked gold as the ultimate asset, winning out of the lot.
“In the short term, there is a reason and a rationale for gold being a comparatively better bet than other traditional diversifiers,” Paul noted.
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Gold Price Prediction
With gold steadily breaching the $3000 price mark, giants like Goldman Sachs have readjusted their prediction for the yellow metal for 2025. Per GS, gold is now capable of breaching the $3700 price mark.
“If a recession occurs, ETF inflows could accelerate further and lift gold prices to $3,880 per troy ounce (toz) by year-end.” The bank noted
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