Business · Markets · 3 hrs ago
Gold falls as market turbulence lifts demand for other safe havens
Market turbulence has lifted demand for traditional safe havens, but not gold.
Concerns about the AI boom have pushed US stocks down from record highs, while investors have sought protection in US Treasuries, the dollar, the Swiss franc and the Japanese yen.
Gold fell below $4,000 an ounce, its lowest level in a year.
It is down 9% so far this year, as higher energy prices and expectations of tighter monetary policy have reduced the appeal of an asset that pays no interest.
Central-bank gold purchases rose 42% to 321 metric tons in the third quarter, the highest quarterly total since late 2024, led by Poland and China.
The IMF has said gold is not a reliable hedge against stock-market swings, despite its traditional reputation as a safe investment.
A rebound may be difficult if falling stocks force investors to sell gold for cash, though the metal is heavily oversold by one measure.
Gold has fallen below US$4,000 an ounce even as AI-related market turmoil has sent investors towards other safe-haven assets.
The metal reached its lowest level in a year on Friday, despite falling stock prices and lower bond yields.
Gold has lost around a quarter of its value since the United States and Israel first attacked Iran on February 28.
Central-bank gold purchases rose 42 per cent in the third quarter to 321 metric tons, the highest quarterly total since the fourth quarter of 2024.
Analysts cited in the articles say gold has increasingly behaved like a speculative asset and has not reliably protected investors from market volatility.
- Who
- Gold investors and central banks. The articles also cite Suki Cooper and Steven Englander of Standard Chartered.
- What
- Gold has fallen below US$4,000 an ounce as investors seek safety from market turmoil, while demand has risen for other traditional havens.
- When
- The articles were published on November 3, 2026; gold fell below US$4,000 on Friday.
- Where
- Global financial markets.
- Why
- Concerns about the AI boom have unsettled markets, but gold has been weighed down by factors including higher energy prices and expectations of tighter monetary policy.
This story does not have two clearly opposing sides.
Gold surged 65 per cent, its best annual performance since the 1970s.
Gold reached a peak of US$5,595 an ounce.
The United States and Israel first attacked Iran.
Gold slid below US$4,000 an ounce, its lowest level in a year.
Central-bank gold purchases rose 42 per cent to 321 metric tons.
- Gold price
- Below US$4,000 an ounce on Friday
- Quarterly central-bank purchases
- 321 metric tons, up 42 per cent
- Gold's annual change
- Down 9 per cent so far this year
- Gold's price decline
- Around a quarter since February 28
- Gold's correlation with S&P 500
- 0.48 over three months and 0.69 over one month
2 sources
What people are saying
are neither universal nor unconditional