Safe Haven: unexpected danger threatens to spark demand for gold

The impact of climate change might spark “safe-haven” demand for gold, according to HSBC experts.

Climate change, like other geopolitical events, may have a comparable influence on gold.

Climate change consequences are anticipated to cause economic, financial, political, and even societal disturbances throughout the world, triggering a “safe haven” demand for gold.

“While gold mining is one of the most carbon-intensive mining operations, our precious metals analyst believes that its high value, limited quantity extracted, and circularity (30% of yearly supply is recycled, with a minor carbon footprint) put overall lifetime emissions below other metals, making its story more positive,” HSBC said.

Earlier, gold prices stabilized, supported by continued demand for safe havens fueled by tensions in the Middle East, as investors awaited the Federal Reserve’s monetary policy meeting scheduled for next week.

By 1322 GMT, gold in spot transactions fell 0.2% to 1980.35 dollars per ounce, while US gold futures fell 0.4% to 1989.60 dollars.