Credit: Kitco

The gold market has shown consistent gains above $2,000 an ounce despite fluctuating gains. Geopolitical uncertainty remains a significant factor, with ongoing conflicts in Ukraine and the Middle East contributing to gold's safe-haven appeal. However, a new report from HSBC highlights the growing impact of the climate crisis on global stability.

Natural disasters expose vulnerabilities in critical infrastructure, while the transition to low-carbon economies could destabilize societies.

Despite the difficulty in measuring the direct impact of climate change on gold, economic modeling suggests potential reductions in global GDP, reinforcing gold's safe-haven status. Lower global food production, economic dislocation, migration, inflation, and financial market instability further support gold's attractiveness as a safe-haven asset.