Gold shifts from safe haven to strategic portfolio asset

Gold’s reputation as a crisis-driven safe haven is evolving. Once primarily a shield against financial turbulence, the precious metal is increasingly being treated as a strategic portfolio component as investors navigate a landscape of complex global risks, Daily Sabah writes.

For centuries, gold has been prized for its stability in times of market stress. But its appeal is no longer limited to periods of crisis.

Socio-cultural factors, macroeconomic conditions, and strategic policy decisions are now shaping demand worldwide, with 2025 providing a clear turning point.

According to the World Gold Council, gold set 53 new record highs last year, yet demand continued to rise—defying conventional expectations that investors pull back at higher prices. This pattern signals a shift toward a more deliberate, portfolio-driven approach to gold investing.

Analysts cite two main drivers behind this trend: the realignment of the global monetary order and the increasing permanence of geopolitical risks. As discussions of de-dollarisation gain traction, gold’s role as an independent store of value has strengthened. Central banks, notably China’s, have boosted allocations to gold over U.S. dollars to safeguard reserves and support macrofinancial stability. Policy shifts in the U.S. and other major economies add further uncertainty, reinforcing gold’s strategic appeal.

Gold’s portability and independence from national or institutional obligations make it particularly valuable in this environment. As a result, central banks and financial institutions are giving it greater prominence in reserves and portfolio strategies.

Data from February 2026 show continued strong interest in physical gold-backed ETFs, with global net inflows hitting a record $19 billion in January. Total assets under management reached $669 billion, with ETF holdings rising 120 tons to 4,145 tons. Asia, led by China and India, accounted for roughly half of global inflows, while Europe also saw rising demand amid geopolitical and trade tensions.

Early 2026 brought heightened volatility, with sharp price swings in gold and other precious metals. Lunar New Year-related thin trading in Asia amplified movements, while investor responses to U.S. monetary policy developments added further complexity. Analysts note that gold, as a non-interest-bearing asset, reflects expectations around interest rates, institutional independence, and overall risk appetite more directly than other commodities.

In Türkiye, gold’s importance is compounded by local factors. The USD/TRY exchange rate and domestic expectations influence prices alongside global movements, increasing short-term volatility. Central Bank of the Republic of Türkiye (CBRT) data show official reserves exceeding 641 tons, while household gold holdings outside banks are estimated at $600 billion—highlighting gold’s dual role as both personal savings and a macroeconomic stabiliser.

Experts caution against interpreting short-term corrections as a signal that gold has lost relevance. Instead, the metal reflects both structural dynamics—like reserve diversification and geopolitical risk premiums—and market reflexes, such as interest rate expectations and fund positioning. The result is a complex landscape where gold’s function as a strategic asset is increasingly entrenched, even amid short-term swings.

By Aghakazim Guliyev