Risk-on markets plummeted in February thanks to global trepidation fueled by President Donald Trump's tariff war.

Consequently, demand for safe haven assets increased, sending gold-related investments higher.

Risk-on markets tumbled in February as global trepidation over President Donald Trump's tariff war boosted demand for safe haven assets and sent gold-related investments higher.

What Happened: Blue-chip indexes like the Nasdaq Composite and the S&P 500 slid 2.93% and 2.96%, respectively, while Bitcoin BTC/USD, the world's largest cryptocurrency, tanked 22% in a month.

Trump's declaration to impose tariffs on major U.S. trade partners, such as China, Mexico, and Canada, has dampened risk sentiment, with critics claiming that it will disrupt critical sectors like auto production and agriculture.

Accordingly, demand for gold, seen as a hedge against economic uncertainty, rose.

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Spot gold traded at $1,922.82 per ounce at the time of writing, up 6.1% from the previous month and 8.8% year to date.

Similarly, SPDR Gold Trust ETF GLD, the world's largest physically-backed gold exchange-traded fund, gained 2.46% in the last month and 9.42% since 2025 began.

Interestingly, while cryptocurrency investors struggled in the ongoing downturn, they had the option of gaining exposure to the yellow metal via physical gold-backed coins such as Tether Gold (CRYPTO: XAUt) and PAX Gold PAXG/USD.

XAUt was up 4.19% over the month and 8.87% year-to-date. PAXG rose 3.37% in a month and 8.84% since the beginning of 2025.

The compiled data revealed broadly similar returns by spot gold and gold-backed cryptocurrencies since the beginning of the year, while the GLD ETF generated a higher profit.