Gold As tensions in the Middle East flare up again and markets worry that the United States may launch a new round of military strikes against Iran, gold—a traditional safe-haven asset—has instead suffered a sharp sell-off, falling last Friday to its lowest level in more than a year. This trend contrasts with the traditional pattern of investors flocking to gold, U.S. Treasuries and the dollar when regional conflicts escalate.
During U.S. President Donald Trump’s second term, the market’s safe-haven logic is changing. The tech-stock rally that drove U.S. equities higher over the past four years, along with the sharp reversal in related stocks recently, is disrupting traditional paths for capital seeking shelter.
Last Friday, a major sell-off in equities dealt a knock-on blow to precious metals through a liquidity-driven flight to safety. Investors facing losses on stock investments urgently needed cash and raised funds by selling gold.
On Friday, Comex gold futures settled at $3,898.90 per ounce, with the most actively traded December contract falling. Samuelson noted that when the stock-market sell-off took place, the gold market was already in a “weak and fragile” state, with prices having hovered just above the key support level of $3,975 established in July. Once that technical support was breached, it further intensified gold’s decline. #btc xau$BTC
During U.S. President Donald Trump’s second term, the market’s safe-haven logic is changing. The tech-stock rally that drove U.S. equities higher over the past four years, along with the sharp reversal in related stocks recently, is disrupting traditional paths for capital seeking shelter.
Last Friday, a major sell-off in equities dealt a knock-on blow to precious metals through a liquidity-driven flight to safety. Investors facing losses on stock investments urgently needed cash and raised funds by selling gold.
On Friday, Comex gold futures settled at $3,898.90 per ounce, with the most actively traded December contract falling. Samuelson noted that when the stock-market sell-off took place, the gold market was already in a “weak and fragile” state, with prices having hovered just above the key support level of $3,975 established in July. Once that technical support was breached, it further intensified gold’s decline. #btc xau$BTC
