Gold, Bitcoin, Volatility: Which Asset Classes Have Benefitted From Trump’s Tariffs?

In global investments markets, it has been a painful three weeks since the so-called “Liberation Day” in America. That was when President Trump unveiled across-the-board tariffs on nearly all countries’ imports into the US.

The subsequent flip-flopping, imposing even higher tariffs on China and a 90-day tariff “pause” for the rest of the world – in addition to exclusions for certain specific goods – have all thrown the markets into disarray.

As investors know, stock markets (and financial markets in general) do not like uncertainty – and we’ve seen global stock markets fall over 10% since then. However, amid all this uncertainty, there have been assets that have performed well.

So, which assets have actually delivered relatively positive returns for investors and why has that been the case?  

Read Also: Trump Tariffs: 4 Sectors With The Biggest Losses On The STI

Gold: Shining Bright Amid Safe Haven Demand

One of the biggest winners from the market chaos has been gold. That’s not a big surprise as the yellow metal is a traditional safe haven asset that tends to outperform during periods of extreme uncertainty. 

If we look at gold’s price performance – using the SPDR Gold Shares ETF (NYSE: GLD) as a proxy – since 2 April, it has risen nearly 10%.

Compare that to the S&P 500 Index’s decline of 9% since 2 April, using Vanguard’s S&P 500 ETF (NYSE: VOO), and it’s clear gold has actually done extremely well in such a short space of time where there were broad market declines. 

As a defensive asset, it has also done well over the past few years – with geopolitical tensions between the US/China and wars in Ukraine and the Middle East acting as catalysts. 

The price of gold has continued to power higher in 2025 amid the Trump administration’s rash policy-making decisions. Indeed, in the first quarter of this year, gold notched its best quarterly performance since 1986. That outperformance versus other major asset classes has only accelerated since the start of this month.

Read Also: A Golden Opportunity: 4 Reasons Why You Should Consider Investing In Gold

Gold Has Outperformed Other Asset Classes Year-To-Date (Up To 2 April)

Source: LSEG Datastream, Investing.com

Adding to gold’s tailwinds are fears that this ongoing trade war will tip the US economy into a recession. If that happens, corporate earnings will inevitably be hit and investors can expect the stock market to depress. 

In recession or market drawdown scenarios such as this, gold also tends to outperform. Finally, with the unpredictability of the US, many countries are thinking about diversifying away from US dollar assets – like US Treasuries – with gold one of the biggest beneficiaries of this trend. 

As an example, many global central banks are now starting to buy more of it given gold cannot be controlled by any one country.

Bitcoin: De-Dollarisation Offers Tailwind For Crypto

Meanwhile, cryptocurrency Bitcoin seems like an unlikely winner from the global economic chaos and stock market declines in recent weeks. That’s mainly because Bitcoin’s price is traditionally closely correlated with tech stocks and elicits the same sort of volatile price action.

However, this recent market drawdown has been different for Bitcoin. The price of Bitcoin – using the iShares Bitcoin Trust ETF (NYSE: IBIT) as a proxy – has actually advanced 0.6% since 2 April, easily outperforming the S&P 500 Index’s 9% decline. Bitcoin is now at its highest level since the 2 April tariff announcements.

Bitcoin Price Back To Pre-Tariff Announcement Levels

Source: Bloomberg

While Bitcoin has typically been seen as a “risk-on” asset, with it still off around 20% from its all-time high after the sell-off earlier this year, Bitcoin is holding up relatively well in this environment for a number of reasons.

First off, the cryptocurrency is benefitting from a weaker US dollar as the market malaise from the Liberation Day announcement rocked both US currency and bond markets at the same time – an unusual dynamic.

With fears over the longer-term viability of the US dollar as the world’s reserve currency, many investors are looking to hedge against dollar weakness and Bitcoin has been one natural alternative given its decentralised appeal.

Secondly, with President Trump now threatening to fire Federal Reserve Chairman Jerome Powell due to his lack of action on cutting rates – potentially ending the Fed’s political independence – many individuals are looking to alternative assets to the traditionally-reliable US Dollar. 

But there’s also an added twist for Bitcoin. With the market now pricing in more Fed rate cuts, and believing they could be forthcoming given the political pressure on Chairman Powell, the flagship cryptocurrency is forecast to benefit from a loosening of monetary policy given its tech stock-like characteristics.

Read Also: 3 Ways The US “Reciprocal” Tariffs Tax May Affect Singapore Businesses And The Economy

Uncertainty + Sell-Offs = Volatility 

One thing that has charactertised the stock market in recent weeks has been volatility. That is often a positive trait for short-term traders but, in this environment, it has been difficult to understand where exactly the market is headed in the next day or two – never mind the next few weeks or months.

The key measurement of volatility is known as the “VIX”, which is short for the CBOE Volatility Index. Buying futures and options on this can be rewarding if you can time it right.

For those that did purchase the VIX just before the 2 April Liberation Day announcement, that timing would have been fortuitous.

That’s because the VIX has traded at a level above 40 for six consecutive days shortly after the announcement of the tariffs. In terms of context, a level between 13 and 19 is generally considered normal while anything above 20 indicates high volatility.

At one point – on 8 April – the VIX spiked to 60, far surpassing its long-term average of 20. With uncertainty on the agenda for the foreseeable future – until trade deals can be worked out with the US – investors can expect volatility to persist in markets.

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