The gold rally is the new bet against Trump

""Investment dollars flowing into gold are largely a function of the risk associated with unpredictable policy in the American political authority," Joe Brusuelas, chief economist at RSM U.S., tells Axios. Gold is acting as insurance against "policy fragmentation," says Paul Karger, CEO of TwinFocus, a wealth advisory firm. Zoom out: The gold rally isn't just about central banks diversifying away from the policy decisions of the Trump administration, says Hakan Kaya, a senior portfolio manager at Neuberger Berman."

"Global investors are "calling bunk on currencies," Karger adds. Central banks globally are still buying U.S. Treasuries, which requires dollar exposure, but the pace of those purchases has slowed. As of October, central banks owned more gold than U.S. Treasuries for the first time in 30 years. This has continued into 2026. Between the lines: Countries that used to keep their cash in the dollar or Treasuries are looking for new stores of capital to diversify away from the U.S."

"Demand for metals broadly is spiking: Data centers that use metals are booming, which is why silver is also rallying. Geopolitical risks are increasing. One analyst says the biggest risk to gold is if risk itself ebbs. Yes, but: Can the gold rally really keep going at this rate? Yes, says Russ Koesterich, portfolio manager for the BlackRock Global Allocation Fund."

Investment flows into gold are driven by perceived risk from unpredictable U.S. policy and policy fragmentation. Investors and wealth managers view gold as insurance amid weakening confidence in currencies. Central banks continue to buy U.S. Treasuries but at a slower pace, and as of October central bank gold holdings exceeded U.S. Treasuries for the first time in 30 years, a trend continuing into 2026. Countries are diversifying reserves away from the dollar and Treasuries toward gold. Demand for metals is rising broadly as data center growth boosts industrial demand, lifting silver alongside gold. The rally's durability hinges on whether political and geopolitical uncertainty persists.

Read at Axios