What are the best safe haven assets during a trade war?

Gold and the Japanese yen are two of the most recognized safe haven assets during periods of global uncertainty, such as a trade war. Advisors often turn to tools like YCharts to compare their performance against equity indices and to understand their historical stability under geopolitical pressure.

How do tariffs affect investment portfolios?

Tariffs can introduce supply chain disruptions, raise input costs, and trigger market volatility—all of which impact corporate earnings and investor sentiment. Advisors use platforms like YCharts to identify at-risk sectors and model alternative portfolio scenarios.

Is gold a good hedge against inflation and geopolitical risk?

Gold has historically served as a hedge against inflation and geopolitical instability. Tools such as YCharts make it easy to track the correlation between gold prices, CPI trends, and market events to assess its potential role in portfolio risk mitigation.

Why is the Japanese yen considered a safe haven currency?

The yen is seen as a safe haven due to Japan's trade surplus, low interest rates, and economic stability. During times of global uncertainty or rising tariffs, investors often shift to yen-denominated assets. Advisors can track ETF proxies like FXY using YCharts to visualize performance.

How can financial advisors protect portfolios from rising tariffs?

Advisors can diversify holdings, overweight defensive sectors, and incorporate safe haven assets like gold or yen. Platforms like YCharts help simulate inflationary scenarios, monitor trade-related data, and set up alerts for evolving tariff policies.

Resources > Blog > Economy > Safe Haven Surge Amid Tariff Turmoil: Gold (GLD) and Yen as Portfolio Shields

Safe Haven Surge Amid Tariff Turmoil: Gold (GLD) and Yen as Portfolio Shields

June 4, 2025

Illustration of economic trends showing interest rates, market volatility, Federal Reserve building, performance charts, and currency—symbolizing financial market movement amid inflation and monetary policy shifts

In the wake of intensifying tariff tensions, investors are rushing into traditional safe havens. Gold and the Japanese Yen are experiencing notable inflows as portfolio managers seek protection against escalating geopolitical uncertainty. The market’s reaction to the United States doubling tariffs on key imports, including steel and aluminum, has been swift, with many advisors asking the same question: How do I protect client portfolios amid rising global trade tensions?

This blog explores:

• The macro environment surrounding new 2025 tariffs
• Why gold (GLD) and the Yen are drawing attention as defensive assets
• How advisors can incorporate safe havens into client portfolios
• YCharts tools to help monitor and allocate effectively in this environment

Global Macro Shake-Up: Tariffs Amplify Volatility

On June 3rd, the U.S. administration doubled down on its trade war stance by raising tariffs on key imports. This move, part of a broader protectionist campaign, has introduced renewed volatility across global markets. The “tariffs” now impact over $200B in goods, with retaliatory threats already surfacing from major trading partners like the EU and China.

For advisors and asset managers, the return of protectionist policy brings elevated uncertainty. Industrial producers, exporters, and multinational equities are facing renewed pressure. As the market recalibrates, capital is flowing into historically defensive assets.

Gold (GLD): A Resurgent Hedge Against Policy Shock

Gold has long served as a portfolio hedge during geopolitical or inflationary episodes. With inflation expectations ticking up due to supply chain cost-push pressures, demand for gold is accelerating. The SPDR Gold Shares ETF (GLD), the most liquid gold-backed ETF, has seen increased volume and positive inflows since the tariff announcement.

YTD performance comparison of GLD vs. S&P 500 highlighting gold’s rise amid market volatility.

Download visual | View chart

Why advisors are rotating into gold:

• Inflation Hedge: Tariffs can spark inflation via higher import costs; gold historically outperforms in such environments.
• Market Volatility: GLD has an inverse correlation with equity risk-off periods, helping to balance portfolios.
• Dollar Hedge: If U.S. trade isolation leads to dollar weakness, gold gains an additional tailwind.

Overlay chart of U.S. inflation vs. gold ETF returns showing correlation in rising inflation periods.

Download visual | View chart

Advisors seeking to manage inflation-sensitive allocations can track the US Consumer Price Index MoM and overlay GLD’s performance to assess correlation.

Japanese Yen: The Currency Safe Harbor

The Japanese Yen (JPY) remains one of the most consistent currency safe havens. When geopolitical risk rises, traders typically unwind carry trades, and the Yen strengthens. Over the last two weeks, the Yen has appreciated against the U.S. Dollar and Euro, coinciding with the tariff escalation and broader market uncertainty.

One-year chart of the USD/JPY exchange rate showing Yen appreciation during tariff-related risk.

Download visual | View chart

Why the Yen matters now:

• Flight to Safety: The Yen’s deep liquidity and Japan’s net creditor status reinforce its safe haven status.
• Currency Diversification: Allocating to Yen-denominated assets can reduce correlation with USD-driven volatility.
• FX Volatility Hedge: Currency-linked ETFs or managed currency strategies can soften portfolio shocks from dollar volatility.

Portfolio Strategy: Allocating to Resilience

Given the current climate, advisors may consider the following tactics:

1. Increase Exposure to Safe Haven Assets

Tactically allocate to gold and Yen ETFs. For example, the iShares Currency Hedged MSCI Japan ETF (HEWJ) can offer FX exposure while remaining equities-neutral.

2. Reduce Tariff-Sensitive Equity Positions

Industrials, materials, and multinational discretionary companies are exposed to margin compression. Review your portfolio allocations using the YCharts Holdings Analysis Tool to assess sector overexposure.

3. Watch Treasury and Inflation Indicators

Inflation from tariffs can pressure the Fed to remain hawkish. Monitor Treasury yield spreads and breakeven inflation rates to better understand bond market expectations.

How YCharts Helps You Respond Strategically

YCharts gives you the tools to stay ahead of market events like these:

Charting GLD and FXY (Yen ETF) vs. S&P 500 to visualize safe haven performance
Overlay key asset classes and benchmark indices in a single view to show clients how gold and the yen have historically performed during market stress.

Economic Indicators to track inflation trends. YCharts provides a rich set of macroeconomic indicators—like CPI, PPI, 5-Year Breakeven Inflation, and Fed Funds Futures—that can be charted together to monitor inflation pressure and monetary policy sentiment.

Alerts for new trade policy announcements or shifts in Treasury yields. Stay ahead of macro events by creating real-time alerts for economic data releases, yield curve movements, or tariff-sensitive equity sectors.

Scenario Analysis to simulate portfolio resilience under tariff-induced inflation. Model different market conditions—rising input costs, currency devaluation, or commodity price shocks—to see how portfolios hold up under pressure.

Conclusion: Seeking Shelter in a Shifting Global Landscape

As tariffs disrupt global trade flows and inject new volatility into markets, the traditional principles of portfolio diversification gain renewed relevance. The recent strength of gold and the Japanese yen serves as a signal to advisors: when uncertainty spikes, clients look to you for calm, clarity, and protection.

Whether shielding client portfolios from inflationary shocks or finding performance consistency amid choppy equity markets, safe haven assets like GLD and FXY deserve renewed attention. But identifying the opportunity is just the start—measuring it, contextualizing it, and acting on it are where YCharts helps you shine.

By leveraging real-time economic data, powerful visual tools, and client-friendly reporting, YCharts ensures that your tariff-era strategies aren’t just reactive, they’re resilient.

Whenever you’re ready, here’s how YCharts can help you:

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