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Middle East Tensions Increase Demand for Safe Haven Assets
Escalating geopolitical tensions in the Middle East are driving investors toward safe haven assets such as gold and strong currencies, including the US dollar (USD), Japanese yen (JPY), and Swiss franc (CHF). Rising global uncertainty has pushed market participants to seek assets that can preserve value during periods of volatility.
According to data from Trading Economics, gold prices declined slightly on Monday (March 9) at 15:56 WIB, falling 1.25% on a daily basis to US$5,094.12 per troy ounce.
Meanwhile, the US Dollar Index (DXY) stood at 99.51, marking a 2.83% gain over the past month. In the foreign exchange market, the USD/JPY pair climbed to 158.65, up 2.76% in a month, while USD/CHF also strengthened 1.61% over the same period to 0.78.
Sovereign Bonds Remain a Key Safe Haven Option
Beyond gold and major currencies, HFX International Berjangka President Commissioner Sutopo Widodo highlighted several alternative safe haven assets. According to him, sovereign bonds are often the primary choice for large institutional investors when uncertainty increases.
Government bonds such as US Treasuries or debt issued by countries with AAA credit ratings, including Germany’s Bunds and the United Kingdom’s Gilts, are widely considered to carry nearly zero default risk.
“When stock markets become volatile, large capital flows usually move into these assets to protect the principal value of investments while still earning fixed returns,” Sutopo told Kontan on Monday (March 9, 2026).
Precious Metals Like Silver and Platinum as Diversification Tools
Sutopo also emphasized the importance of precious metals such as silver in portfolio diversification. Although silver tends to be more volatile due to its industrial demand, it often maintains a strong positive correlation with gold during periods of currency devaluation.
In addition, platinum can also serve as an alternative investment. Its rarity even exceeds gold, although the market is much smaller and heavily influenced by demand from the automotive industry.
Defensive Stocks and Real Assets Offer Stability
According to Sutopo, defensive sectors such as Consumer Staples, Utilities, and Healthcare stocks typically remain stable during economic or geopolitical turmoil. Companies in these industries provide essential products and services that remain in demand regardless of inflation or geopolitical tensions.
Furthermore, land and property can serve as one of the most resilient long-term wealth storage options.
“Unlike currencies that can be diluted by inflation, land is a finite asset with continuously growing demand. In extreme economic conditions, owning real assets provides peace of mind because their value will never drop to zero,” Sutopo explained.
Gold, USD, JPY, and CHF Still Considered Primary Safe Havens
Meanwhile, Doo Financial Futures commodity analyst Lukman Leong noted that gold, USD, JPY, and CHF have long been recognized as traditional safe haven assets. Other assets often depend on individual investor preferences since there is no universal consensus.
Some investors consider Bitcoin, the Singapore dollar (SGD), and the Norwegian krone (NOK) as alternative safe haven assets.
“In my view, gold, USD, CHF, and JPY remain the primary safe havens, although their characteristics can change depending on market developments,” Lukman said.
However, Lukman believes that silver and other commodities are less suitable as safe haven assets because they tend to be too volatile during market uncertainty.