Gold's Gleam Dims: Volatility Challenges Its Safe Haven Status

Gold's status as a safe haven is under scrutiny due to unprecedented volatility, with record price swings challenging its reliability. Central banks and investors are questioning its role as a stable asset amid geopolitical and market uncertainties. Analysts suggest diversifying as gold’s safe haven shine dims.

Gold, long considered a reliable safe haven, is experiencing unprecedented volatility, prompting questions about its stability. Recent record price swings, including a 10% drop followed by a significant rise, have shaken investor confidence.

The dramatic fluctuations have impacted central banks and long-term investors who rely on gold for stability amid geopolitical and market uncertainties. The yellow metal's status as a dependable safe haven is under scrutiny, with some analysts urging diversification.

Central banks, significant buyers of gold, may reconsider their strategies. Analysts advise alternative portfolio hedges, citing concerns about U.S. policy and market dynamics. The volatility underscores the challenges in using gold as a long-term hedge.

(With inputs from agencies.)