๐ 12 February 2026
๐ Trade Wars and Gold's Defensive Appeal โ Today's Strategic View
Global trade tensions are once again making headlines, where tariff disputes and supply chain restrictions between major economies have increased uncertainty. In such an environment, investors' first reflex is to shift capital towards defensive assets โ and here, gold reinforces its traditional safe-haven identity. ๐ก๏ธ
The direct impact of trade wars affects global growth expectations. When export-import flows are disturbed, corporate earnings come under pressure and volatility in equity markets increases. Against this backdrop, gold is seen as a hedge that provides portfolio stability during macro instability. ๐
Dollar movement and bond yields are also part of this equation. If the risk of a growth slowdown increases due to trade conflict, central banks may adopt an accommodative stance, which compresses real yields. Historically, lower real yields create a supportive environment for gold. ๐น
Additionally, geopolitical rhetoric and policy unpredictability make investor sentiment cautious. In a risk-off mood, institutional flows often tilt towards gold ETFs and bullion exposure. This repositioning keeps medium-term demand stable despite short-term volatility. ๐ฆ
For emerging markets, trade disruptions can also lead to currency pressure, where gold is viewed as a wealth preservation tool. This reinforces gold's defensive demand at both global and regional levels. ๐
Overall, as long as there is no clarity in trade negotiations, the strategic role of gold in portfolios is likely to remain intact โ serving as a shield during times of uncertainty. โจ
