Investors turn to gold and oil as safe-haven assets during market volatility.

From Investing.com: 2025-01-16 01:45:00

Market volatility is on the rise due to factors like inflation, the Ukraine conflict, and Trump administration policies. Safe-haven assets like gold and oil are gaining popularity during economic downturns, with ETFs like SPDR Gold Shares and United States Oil Fund seeing strong performance.

Gold remains a stable investment during uncertain times, with factors like inflation, geopolitical risks, and central bank policies driving increased interest. The SPDR Gold Shares ETF provides a convenient way to invest in gold, with a 29.53% increase in share price over the past year.

Oil prices are also volatile, influenced by supply constraints and geopolitical tensions. The United States Oil Fund offers a way to invest in oil without holding futures contracts, with a 20.89% one-year return.

Comparing GLD and USO, GLD has outperformed USO over the past year with a 29.53% return, while USO has shown stronger year-to-date gains at 8.84%. Both carry risks and are impacted by market volatility.

Investors should consider a balanced approach to investing in gold and oil, given the uncertainties in the market. Diversification across asset classes is key to managing portfolio risk and aligning with individual financial goals and risk tolerance.



Read more at Investing.com: Investors Navigate Uncertainty by Seeking Refuge in Gold and Oil