Recent rounds of escalating geopolitical tensions have directly pushed the safe-haven attributes of gold to new heights. From being a simple trading instrument to an "insurance policy" in investment portfolios, this transformation is quite interesting.

On the surface, the increased U.S. military presence in the Caribbean, rising tensions in East Asia, and the worsening situation in Eastern Europe all stack up, causing capital to flood into gold as if on fire. But upon closer reflection, the logic behind gold reaching new all-time highs is far more complex than just "this event is risky." The real driving force is the market's concentrated response to the entire tail risk—new military actions have redefined the global risk pricing model, and investors are no longer just speculating but genuinely buying insurance.

The reality now is that gold is no longer a purely short-term trading tool. In an environment where geopolitical pressures continue to escalate, the probabilities of supply chain disruptions and policy shocks are rising sharply. Compared to assets that depend on yields, gold’s defensive characteristics stand out even more. Moreover, the fact that gold prices can continue to rise after breaking through key levels shows how strong the defensive buying power is—you can see that there has been little to no large-scale profit-taking at these high levels.

Looking ahead, with multiple geopolitical pressures unlikely to find solutions in the short term, this directly means that gold’s equilibrium price will continue to seek new support levels upward. Even if there is a correction, the space will be tightly constrained, and once prices fall, new buyers will quickly step in. The key factor moving forward remains how the geopolitical situation unfolds—if tensions continue to escalate, gold prices stabilizing at $4,500 should face little resistance; but if there’s a sudden breakthrough diplomatically and risk expectations quickly recede, gold could enter a period of relatively stable correction.