Gold Surpasses U.S. Treasurys, Yen and Swiss Franc as the Top Safe-Haven Asset in 2025

SINGAPORE – Gold has emerged as the world’s leading safe-haven asset in 2025, outperforming traditional choices like U.S. Treasurys, the Japanese yen, and the Swiss franc. Spot gold prices have surged by 30% year-to-date, reflecting deep investor concerns over fiscal instability, global conflicts, and volatile policymaking.

At the Asia Pacific Precious Metals Conference, experts emphasized that gold’s independence from government liabilities is a key reason for its resilience.

“Gold’s key advantage is that it is no one else’s liability,” said Nikos Kavalis, Managing Director at Metals Focus. “With bonds or fiat currencies, you’re ultimately investing in the issuing country’s economy,” he noted.

Gold Outshines as Global Uncertainty Rises

Since the start of 2025:

The U.S. Dollar Index has fallen nearly 10%.

The Japanese yen and Swiss franc appreciated by about 8% and 10%, respectively.

The U.S. 10-year Treasury yield declined by 19 basis points, indicating increased demand for bonds.

However, gold has consistently broken record highs, currently trading around $3,403/oz, after peaking above $3,500 in April. Instability in the Middle East, concern over U.S. fiscal health, and investor unease about the dollar's future are pushing more capital into bullion.

“There’s growing uncertainty over the long-term future of the U.S. dollar and Treasurys,” said Shaokai Fan, Global Head of Central Banks at the World Gold Council.

U.S. Treasurys Losing Safe-Haven Appeal

Once considered the ultimate financial refuge, U.S. Treasurys are now under pressure. A sharp sell-off in April followed President Trump’s “reciprocal” tariffs, while Moody’s credit downgrade and the Trump tax bill in May further dented confidence.

The 30-year Treasury yield surpassed 5%, reflecting investors’ concerns over the lack of fiscal discipline. Although demand for U.S. debt has rebounded slightly, uncertainty surrounding U.S. economic policy continues to erode confidence.

Other Traditional Safe Havens Under Pressure

Japan’s 10-year government bond yield rose 39 basis points in 2025, as structural concerns and rate differentials kept the yen less attractive.

The Bank of Japan maintained its policy rate at 0.5% during its May and June meetings, citing external risks and weak domestic growth.

The Swiss franc gained over 10% against the dollar, but the Swiss National Bank may be discouraging capital inflows by lowering its policy rate to 0.25%. Falling inflation even sparked predictions of negative interest rates.

“If Swiss rates turn negative again, investors might avoid the franc despite its historical safety,” said Bart Melek, Head of Commodity Strategy at TD Securities.

Why Gold Remains the Ultimate Safe Haven

Not tied to any government or political entity

No counterparty risk or default risk

Limited natural supply — not fiat-based

Large, highly liquid market

Unaffected by debt-to-GDP ratios or central bank policy

“Unlike government-issued assets, gold is apolitical and finite,” said Fan. “That’s what makes it unique as a long-term safe haven.”

“Gold has intrinsic value. I’m not dependent on a government or private entity to fulfill a debt obligation,” Melek added.

Central Banks Keep Accumulating Gold

In 2024, global central banks added a net 1,044.6 tons of gold to their reserves — the third consecutive year surpassing the 1,000-ton mark.

The European Central Bank recently reported that gold has overtaken the euro as its second-largest reserve asset, comprising 20% of global reserves by the end of 2024.

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