eToro: Half of Investors in the UAE View Gold as the Most Resilient Asset Against Market Fluctuations

The latest survey conducted by eToro reveals that approximately half of the investors in the UAE (49%) regard gold as the most resilient asset amidst ongoing global volatility.

Josh Gilbert, a market analyst at eToro, stated, “This is a remarkable year for gold, as the precious metal has surged by 29%, making it one of the best-performing assets of 2025, marking its most successful year in the last 15 years.

This follows a 27% gain in 2024, driven by increased investor allocations, a shift in uncertainty to a new normal, and sustained purchases from central banks.

He noted that owning a part of this shining metal has become more accessible than ever; instead of storing coins or bars in vaults, investors can now gain exposure through exchange-traded funds.

Gold has regained attention after former U.S. President Donald Trump moved to impeach Federal Reserve Board member Lisa Cook, raising concerns about the independence of the central bank and boosting demand for safe-haven assets.

Gilbert remarked, “This clearly indicates that local investors in the UAE, despite their significant optimism about their markets, are not overlooking global risks, hence allocating part of their portfolios to commodities like gold as a protective measure.”

With over 90% of individual investors expecting trade tensions to impact their portfolios in the coming months, it is not surprising that allocations to defensive assets are rising alongside equities.

He added, “Consider gold as a financial safety net; it is the asset that many turn to when economic storms loom, providing a safe haven for both novice and experienced investors during uncertainty.”

In today’s world, where concerns about inflation, tariffs, and geopolitical conflicts create instability, gold continues to prove its worth within investment portfolios.

Regarding the future of gold, he mentioned, “Fundamental indicators support further increases, with expected interest rate cuts from the Federal Reserve, a weakening U.S. dollar, and ongoing strong investment demand.

Having already outperformed major stock indices and benefitting from ongoing central bank purchases that enhance momentum, the precious metal is likely to remain a focal point for investors globally and in the UAE amidst persistent uncertainty.

Ultimately, for long-term investors, gold has clearly demonstrated its rightful place in a diversified portfolio; it offers a measure of stability against risks, serves as a reliable store of value over the long haul, and plays a critical role as a diversification tool.

Even in the era of digital assets and complex financial products, owning a slice of this classic yellow metal remains a source of balance and reassurance.

Business

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