Despite intense geopolitical tension followingv U.S. and Iranian missile exchanges, gold prices have struggled to maintain momentum above $3,400 an ounce. Analysts attribute gold’s muted safe-haven response to the conflict’s regional containment and investor focus on broader market dynamics. 

UBS argues that gold’s value lies more in its role as a portfolio diversifier than a short-term geopolitical hedge, emphasizing its historical strength in times of uncertainty. According to the World Gold Council, central banks and portfolio managers rank gold highly for diversification, stability, and as a store of value—especially amid unpredictable U.S. policies under the Trump administration. 

UBS maintains a bullish $3,800 price target for gold, citing continued central bank and ETF demand, and also highlights high-yield corporate debt from gold miners as an underappreciated investment opportunity. 

Finsum: With mining companies showing strong balance sheets and free cash flow, M&A activity is expected to rise, offering investors alternative ways to gain from the sector’s resilience.