- Gold prices hit $3,200 for the first time on Friday.
- Trump's tariffs and China's retaliatory action have roiled global markets.
- A BlackRock strategist said gold was a better hedge than Treasury bills amid the market turmoil.
"Also not normal — risk off, #dollar and Treasuries down. I will keep saying it: #gold is a better diversifier than Treasuries in this environment of high debt."
The dollar has also suffered amid the turmoil, hitting a three-year low against the euro and a 10-year low against the Swiss franc.
"In this new regime characterized by 1/ #inflationary pressure and 2/ high #debt, gold has been and could continue to be a better diversifier than long-duration Treasuries," Li wrote in an earlier LinkedIn post.
Last month gold broke through the $3,000 level for the first time. In the days following Trump's tariff announcement on April 2, the metal went as high as about $3,150 before retreating.
Gold has since regained momentum as investors seek out safe-haven assets, which typically maintain or increase their value during market turbulence.
In a Friday note, UBS analysts raised their 2025 gold price target to $3,500, citing "escalating tariff uncertainty, weaker growth, higher inflation and lingering geopolitical risks."
"Gold seems to be unfazed by higher US yields," they wrote, adding that the metal has stood out this year compared with other safe havens including Treasurys, the franc, and the yen.
Analysts at Bank of America also have a price target of $3,500 for gold.
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