Gold has historically served as a reliable hedge during periods of geopolitical tension, economic uncertainty, and inflation, as it tends to hold its value and attract safe-haven demand. The current escalation in the Russian conflict and tariff-related tensions would naturally heighten interest in gold as a protective asset.

Gold Outlook:

If the geopolitical and economic risks persist or intensify, gold could indeed breach the $3,500 mark. However, predicting commodity prices is inherently uncertain due to the complex interplay of factors such as interest rates, currency strength (particularly the U.S. dollar), and central bank policies.

Physical Gold vs. Gold Futures:

Physical Gold: Offers direct ownership and is considered a long-term store of value. It is suitable for those looking for stability, but it comes with costs such as storage and insurance.

Gold Futures: Allow for leverage and are more liquid, making them suitable for short- to medium-term strategies. However, they are riskier due to price volatility and margin calls.

The choice depends on your investment horizon, risk tolerance, and purpose. For long-term preservation of wealth, physical gold may be preferable. For active trading and short-term hedging, futures might be more appropriate.

U.S. Stocks vs. Gold:

U.S. Stocks: Despite short-term risks, stocks often outperform over the long term due to economic growth and compounding returns. Investors with a higher risk tolerance and a longer time horizon may prefer equities.

Gold: Better suited for those seeking safety during periods of uncertainty. It doesn't provide income (e.g., dividends) but offers protection against inflation and currency depreciation.

If your outlook anticipates prolonged uncertainty and market volatility, favouring gold in the short term could be prudent. Conversely, if you believe the U.S. economy will remain resilient and are comfortable with potential market swings, U.S. stocks might be the better choice.