Gold Shifts Toward Risk Asset Behavior, Brooks Warns

On June 5, Robin Brooks of the Brookings Institution flagged that gold is increasingly trading like a cyclical risk asset rather than a traditional safe haven. This follows the ECB's June 3 confirmation that gold overtook U.S. Treasuries as the top global reserve asset at 27% versus 22% by late 2025. The milestone was driven by a 66% price surge in 2025, central-bank purchases of 863 tonnes, and additional buying by entities such as Tether. Related ETFs GLD and GDX posted modest gains while valuations highlighted attractive names like AngloGold Ashanti. The evolution raises questions about gold's hedging role going forward.