Gold is back in the spotlight after US President Donald Trump moved to oust Federal Reserve Governor Lisa Cook, sparking concerns about central bank independence and boosting haven demand.
Josh Gilbert, Market Analyst at eToro shares: It’s been a stellar year for gold, with the precious metal up 29%, making it one of the best performing assets in 2025 and its best year in 15 years. This builds on the 27% gain we saw in 2024, underpinned by rising investor allocations, uncertainty becoming the new normal, and consistent central bank buying. Owning a slice of the shiny metal is more accessible than ever. Instead of stashing away coins or bars in a vault, investors can now gain exposure via exchange-traded funds (ETFs).
Think of gold as a financial security blanket, it’s the asset many turn to when storms are brewing and offers beginner, intermediate and advanced investors a ‘safe haven’ in times of uncertainty. In today’s world of inflation worries, tariffs and geopolitical conflicts all creating uncertainty, gold as a portfolio stabiliser continues to prove its worth.
In its own right, UAE markets are also being seen as something of a ‘safe-haven’ by investors with limited impact from tariffs and support by strong economic fundamentals. eToro’s latest Retail Investor Beat survey shows this in the UAE. Confidence in the local economy and markets is running high, with 85% of investors backing UAE-listed stocks, but almost half (49%) view gold as the most resilient asset in the face of ongoing trade volatility.
This is a clear sign that while local investors in the UAE are bullish on their home markets, they’re not blind to global risk and are allocating to commodities like gold as a form of protection. With over 90% of retail investors expecting trade tensions to impact their portfolios in the coming months, it is no surprise that allocations to defensive assets are rising alongside equities.
So what’s next for gold? The fundamentals point to further upside, supported by incoming Fed rate cuts, a weaker US dollar, and resilient investment demand. With gold already outpacing major equity indices and with central bank buying adding to the momentum, the precious metal is set to remain a key focus for both global and UAE investors as uncertainty remains.
Ultimately, for long-term investors, gold has clearly justified its position in a diversified portfolio. It offers some stability against risk events while providing a reliable longer-term store of value and, importantly, as a portfolio diversifier. Even in the age of digital assets and complex financial products, a bit of that classic yellow metal can provide balance and reassurance.
