Amid a backdrop of disappointing corporate updates from tech giants Alphabet and AMD, and looming regulatory concerns over a potential antitrust probe into Apple, investors are shifting their focus towards haven assets. This shift is evident as US equity futures decline, with Nasdaq futures down 1% and S&P contracts falling 0.6%. The uncertainty surrounding these major tech companies has dampened investor confidence, prompting a move away from equities. Additionally, the rise in Japanese nominal wages, the fastest in nearly three decades, has bolstered the yen, further indicating a flight to safety.
In this environment, gold has emerged as a preferred safe-haven asset, with its price climbing $29 to reach a fresh record high. The weaker US dollar, as indicated by a 0.3% decline in the Bloomberg Dollar Spot Index, has also contributed to the increased demand for gold, making it more attractive to investors using other currencies. The SPDR Gold Shares ETF (GLD), which aims to track the price of gold, is currently trading at $264.99 as of 05:41 on February 5, surpassing its previous 52-week high of $262.54.