Gold prices rise as investors turn to safe haven asset in response to tariff concerns

From Investing.com: 2025-02-03 15:19:00

Last week, the DeepSeek news caused stocks to drop, but this week it’s tariff concerns. The DeepSeek news focused on one industry, but AI companies are still strong. Tariffs are causing worries about inflation and retaliatory actions. Companies like Palantir, PayPal, Spotify, AMD, and Alphabet will report earnings this week. Gold ETF GLD hit a record high, seen as a safe haven trade. Investors can hedge with inverse ETFs or options. On Wednesday, we’ll get the JOLTs data and earnings from Uber and Disney. Thursday brings Amazon and Eli Lilly earnings, while Friday will reveal the monthly jobs report.

Gold is a popular hedge against geopolitical and inflation risks, with the GLD hitting a record high. Investors can also hedge with inverse ETFs or options in times of trouble. Bulls will want to see GLD stay above $257.71. Short-term traders with stock exposure can consider inverse ETFs for hedging, which go up when markets go down. Put options can also be used to hedge long positions.



Read more at Investing.com: Gold Shines as Tariffs Ignite Market Worries