SINGAPORE – Gold sales in Singapore have surged as investors seek safe-haven assets amid escalating global economic uncertainties. According to a report by Channel News Asia, local bullion dealers and retailers are witnessing heightened demand for gold bars and coins, driven by concerns over inflation, geopolitical tensions, and volatile financial markets.
This trend aligns with a global pattern where investors are turning to gold to safeguard their wealth. In 2024, gold investment in Singapore increased by 22% year-on-year, reflecting a growing preference for the precious metal as a store of value. The Monetary Authority of Singapore also adjusted its gold reserves, selling 10 trillion of gold while maintaining significant holdings, indicating a strategic response to record gold prices and evolving economic conditions.
The surge in gold demand is not limited to Singapore. Globally, gold prices have reached historic highs, with spot gold hitting $3,424.24 per troy ounce, up more than 30% since the start of 2025. This increase is attributed to investor anxiety over unpredictable trade policies, including sweeping tariffs affecting both allies and adversaries, and threats toward Federal Reserve Chair Jerome Powell. Such developments have rattled markets, worsened global economic outlooks, and raised fears of inflation, prompting a flight to traditionally safer investments like gold.
Read More: Trump Import Tariffs Causing Mazda Sales to Increase
In Singapore, gold’s appeal is further bolstered by its role as a hedge against currency fluctuations and current account vulnerabilities, especially pertinent for investors looking to participate in ASEAN’s growth potential. Gold’s performance during periods of capital reversals, such as the taper tantrum in 2013, highlights its resilience compared to domestic bonds and currencies.
While investment demand for gold has surged, gold jewellery consumption in Singapore declined by 5% year-on-year to 6.8 trillion, as rising gold prices made purchases less affordable. This mirrors global trends where high prices have dampened consumer spending on gold jewellery.
Looking ahead, Singapore’s gold demand is expected to remain strong in 2025, particularly in investment, as economic and geopolitical uncertainties persist. Analysts predict that gold will continue to serve as a reliable safe-haven asset, offering protection against market volatility and inflationary pressures.
Source: CNA
