Gold prices could surge to $5,000 an ounce if tensions between the United States and China continue to escalate, predicts global financial advisory giant deVere Group.
The analysis from CEO Nigel Green comes as the precious metal continues to rally aggressively, breaching fresh all-time highs above $3,450 in Asian trading on Tuesday.
The momentum is intensifying as the global investment community braces for what could become a prolonged, entrenched economic war between the two largest economies in the world.
Nigel Green, CEO of deVere Group, says: “The world is watching a strategic decoupling of the world’s two largest economies in real time.
What began as a tariff spat is evolving into a geopolitical and economic confrontation—with implications that stretch far beyond trade. In this environment, gold is becoming the ultimate financial insurance.”
Investors are rapidly repositioning as the US-China standoff deepens. Tariffs are rising. Technology restrictions are expanding. Capital markets are fragmenting.
“The notion that either side will back down is fading fast. And as the risks of a full decoupling grow, so does the demand for gold.
“Capital seeks clarity. Right now, we have anything but that,” continues Nigel Green. “The US and China are now competing not only economically, but ideologically. This is not a short-term cycle—it’s a long-term realignment. And it’s driving a seismic shift in portfolio strategy.”
The US dollar, traditionally seen as the global safe haven, is losing its footing as these tensions rise. Ironically, the more strained the relationship between Washington and Beijing becomes, the less confidence investors have in the dollar, and the more appealing dollar-denominated assets like gold become.
It’s not just about diversifying away from the greenback—it’s about preparing for the consequences of a world where global trade flows, supply chains, and financial systems are being pulled in opposing directions.
Meanwhile, political uncertainty within the US is amplifying the gold rush.
“Trump’s renewed attacks on Federal Reserve Chair Jerome Powell—and reports that his administration considered ways to remove him—have rattled global markets.
“When the independence of central banks is called into question, the implications for inflation, interest rates and currency stability become unpredictable. It’s no wonder investors are seeking shelter.”
Gold, long considered the traditional store of value in times of upheaval, is once again proving its strategic relevance—not just as a hedge, but as a core allocation.
Importantly, inflation risks are no longer viewed solely through the lens of economic cycles.
“With both Washington and Beijing engaging in massive state-driven industrial strategies and supply chain protectionism, inflationary pressures are being embedded into the new global order. Unlike past episodes of inflation sparked by excess demand, this one is being structurally fuelled by economic nationalism,” notes the deVere CEO.
“The days of cheap, frictionless trade are behind us,” says Nigel Green. “That has consequences—particularly for prices. It means higher structural inflation, weaker currencies, and a renewed focus on hard assets. Gold sits at the centre of all three.”
The current surge in price is not a speculative spike—it reflects a repricing of risk. And deVere Group believes the next phase could be even more dramatic if US-China relations deteriorate further.
“Should Washington and Beijing continue to double down instead of de-escalate, we’ll see continuing significant inflows into gold.
“As the world becomes more fractured, investors will keep chasing safety.”
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of offices around the world, more than 80,000 clients, and $14bn under advisement.
