Gold has emerged as a top-performing store of value in this economic cycle amid economic instability and a weakening US dollar. Although recent policy shifts by the Trump administration have caused some volatility in gold prices, bullish momentum remains intact. The medium-to-long-term fundamentals remain robust. Moreover, expectations for further Federal Reserve rate cuts persist, while the US dollar continues to exhibit a clear weakening trend in the medium term. Amid persistent geopolitical uncertainties, gold trades within a predominantly bullish market structure. Given the wide range of gold investment products, how can investors best capture gold’s dual role as a safe-haven and an investment vehicle? Tokenized gold is fast emerging as a dominant force in this space.

Gold prices remain strongly supported in the short to medium term, driven by risk-hedging demand and policy-driven safe-haven flows.

The announcement of retaliatory tariffs has intensified concerns over the global economic outlook, driving a surge of safe-haven flows into the gold market. Uncertainty surrounding Trump’s policies has continued to lend support to gold prices. Meanwhile, the Federal Reserve remains in a rate-cutting cycle, with stubbornly high inflation and declining real interest rates injecting fresh impetus into gold prices. More importantly, as global economies move from cooperation to confrontation, central banks are continuing to add to their gold reserves as a means of underpinning confidence in their domestic currencies.

Earlier this week, following a renewed rout in US assets, the Trump administration stepped in to stem the market decline. Trump withdrew his threats to fire Federal Reserve Chair Jerome Powell and explicitly called for rate cuts. These moves helped ease concerns over political interference in the Fed, calming market tensions and softening risk-off sentiment, with capital beginning to shift back towards riskier assets. Nevertheless, gold continues to serve as the primary hedge for diversified risk exposure across asset classes. Gold is expected to remain underpinned by continued buying interest, with prices likely to maintain a moderately bullish trajectory.

Over the medium to long term, concerns over a potential US recession or stagflation are expected to support continued strength in gold prices.

Expectations of a US recession or stagflation are likely to support further strength in gold prices. Over the medium to long term, sustained inflationary pressures reinforce gold’s role as a hedge against inflation. Should the US enter a stagflationary environment of high inflation and sluggish growth, gold prices are likely to see additional upside. Furthermore, as gold’s role as an alternative reserve asset grows and de-dollarization gains momentum, gold’s long-term value is expected to rise, cementing its position as a core component of diversified portfolios.

Optimizing Returns through Gold: Liquidity and Access to Physical Gold Are Critical Factors.

The market offers a wide array of gold investment options—from paper gold and bullion to jewelry and tokenized gold—leaving investors with critical choices to make.

Access to physical gold is essential to fully realize its safe-haven function.

In a tariff-driven, unstable economic environment, flight-to-safety demand has been a major driver of gold’s recent price rally. Physical gold effectively preserves value, shielding investors from risks like the erosion of purchasing power caused by currency depreciation. Thus, whether a gold investment offers physical redemption is a crucial consideration. Products such as paper gold, which lack physical backing, are inherently more speculative and ill-suited for long-term risk-averse investors.

Gold purity also plays a crucial role in the tradability of physical gold. For example, most investment-grade bullion is refined to 99.99% purity, while XAUm—a tokenized gold issued by Matrixport’s RWA platform—is backed 1:1 by physical gold that is fully LBMA-certified. Compared to jewelry and paper gold, high-purity bullion offers superior liquidity and is better suited for serious investment purposes.

XAUm enables physical redemption and on-chain collateralization, maximizing asset utility.

Liquidity is critical to gold’s role as a safe-haven asset. Unlike bank-issued investment bullion, which often comes with strict redemption conditions, the tokenized gold XAUm integrates the high liquidity of blockchain technology with the intrinsic value of gold, enabling efficient and transparent circulation. Issued by Matrixport’s RWA platform, XAUm not only supports offline physical gold redemption but also allows holders to use it as collateral, thereby maximizing capital utilization. XAUm is now listed on major over-collateralization platforms such as PancakeSwap, Kinza Finance, and UniSwap,  and has become the Top 3 tokenized gold on public chains.

In a recent report, Goldman Sachs raised its 2025 gold price target from $3,300 to $3,700 per ounce—a 12% hike, marking its boldest forecast adjustment of the year. Investor sentiment remains strongly bullish on gold’s outlook. Additionally, a recent report from the World Gold Council noted that central banks have maintained strong demand for gold, with February data indicating that global central bank reserves rose by 24 tonnes.

Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.