Why gold shines bright for Deriv’s traders

1. An inflation hedge:

People’s understanding of money affects how they save. Some keep cash at home, risking theft and losing value to inflation. Others buy gold, which usually increases in value over time, despite occasional drops. This is safer than keeping money in currencies, which can lose value quickly due to inflation. Gold’s history proves its resilience against rising prices. Unlike currencies, its limited supply helps it hold value over time.

1. A safe harbour:

Economic and geopolitical instability causes investors to seek safe-haven assets to protect their wealth. Gold is a classic safe haven because it tends to maintain or increase its value when other markets, such as stocks or currencies, decline. For example, during the 2008 financial crisis, gold prices rose significantly as investors sought refuge from market volatility. This surge in investor demand naturally leads to a rise in gold prices.