Rate fear feeds the demand for safe haven
Markets are braced for the announcement of 2 April “Liberation Day”, in which traders in a more aggressive American trade attitude prices. President Trump is expected to reveal mutual rates that are aimed at persistent trading balances, while a blanket 25% car rate will come into effect on 3 April.
The threat of retaliation measures and worldwide disruptions of the supply has resumed the fear of inflation and delayed growth – conditions that have propelled historic gold higher. Gold’s movement comes when the MSCI World Index fell 1.2%, which reflects a rotation from risk provisions and in exposure to safe haven.
Institutional buying goes beyond central banks
The top four insurers of China, who manage a combined ¥ 13 trillion to assets, have a pilot program for gold buying with projected inflow that is equivalent to 183 tons. That represents almost half of the global purchases of the Global Central Bank.
This strategic shift reflects a deeper institutional pivot point to gold and both an inflation hedge and a geopolitical risk -offset. Combined with a steady ETF question and the current accumulation of the central bank, this institutional wave offers strong structural support for the rally.