According to analysis from Global X, markets are eagerly watching to see if gold starts to approach US$3,500, particularly as investors begin to cast doubt over the safe haven status of US Treasuries despite the continued equities sell-off.
“The 10-year Treasury yield has this week seen the biggest three-day jump since 2001. US government yields jumped again overnight – that’s a reflection that investors right now don’t want to hold US assets, even those once considered safe like government bonds,” noted Global X senior investment strategist Marc Jocum.
Notably, demand for gold ETFs is set to strike a record high on the ASX. More than $1.6 billion was traded in Australian-listed ETFs on Wednesday, exceeding the daily average of around $900 million, and marking the fifth consecutive day with ETF trading volumes north of 10 figures.
In the case of Global X’s own flagship gold ETF product, it was one of the most highly traded on the ASX on Thursday as investors continued to flee into the yellow metal.
“Global X Physical Gold was the third-most traded ETF on the Australian sharemarket yesterday, with over $73 million exchanging hands, marking the fifth highest trading day in the ETF’s history. We expect investors to continue buying up gold ETFs,” Jocum said.
Now, the investment strategist claims that gold has firmly cemented itself as the “premier safe haven asset”, with the latest tariff announcements coming out of the US showcasing its strength in the wake of uncertainty.
“With heightened uncertainty and significant swings in global bond markets, investors are diversifying away from US safe haven assets like Treasuries into gold as an alternative store of value,” Jocum said.
“Gold could experience record-breaking inflows this month on the back of rapidly rising retail demand. This would be a continuation of solid gold buying we saw through the first quarter of 2025 as gold ETFs in Australia saw their biggest quarterly inflows since the height of the COVID-19 pandemic in Q3 2020 with over $500 million pouring in.”
Jocum added that many investors are likely taking advantage of gold ETFs’ liquidity to capitalise on wild market swings. Expounding on this, he said that there have been some clients opting to reduce their exposure to gold as the price reaches record highs and topping up on underperforming assets like equities.
“Yesterday’s share market movements highlight how tactical rebalancing can enhance client portfolio returns, showcasing the versatility of ETFs as both strategic building blocks and tactical tools for navigating volatility and maintaining diversification,” he said.
Not enjoying these same gains is gold’s dubbed “digital” counterpart, bitcoin.
The cryptocurrency is in the green over the last five days, up more than 3 per cent. But its year-to-date loss of 13.5 per cent, and consequent vulnerability to short-term market movements, showcases that being labelled “digital gold” might not come with the same safe haven credentials.
It was this time only three months ago that the strongest one-year performers included Global X’s bitcoin ETF. Now, cryptocurrency products are seeing a strong pullback back to match investors’ broader risk-off sentiment.
The Global X 21Shares Ethereum ETF saw one-year losses of 46.6 per cent, leading the pack for worst performers in the 12 months to March.
Commenting on the divergence that markets are witnessing between gold and bitcoin, Coinstash founder Mena Theodorou said that it highlights the different roles that the two assets play during periods of market stress. This is in spite of them often being compared.
“While both are considered hedge assets, resistant to debasement, their short-term behaviour can differ significantly,” Theodorou told InvestorDaily this week.
“Gold has remained relatively resilient despite global trade tensions, supported by its market depth and established safe haven status.
“Bitcoin, by contrast, has had a rough week and is being impacted by macroeconomic conditions, like equities.”
Theodorou added that its position as a high-beta risk asset is confirmed by its short-term price movements.
“Its long-term appeal as a scarce, digitally native store of value remains strong, but it’s clear its safe haven credentials are still developing,” he said.
