Gold isn't your safe haven in this war: It just logged its biggest weekly drop in over 14 years

[libertybele]

Gold isn't your safe haven in this war: It just logged its biggest weekly drop in over 14 years

 Margin calls, jump in 'value-at-risk' and a shift in U.S. interest-rate expectations are pulling precious-metals prices lower

Gold futures fell 9.5% for the week ended March 20.

Gold prices posted their largest weekly percentage drop in more than 14 years Friday, underscoring how shocks from the Iran conflict are unleasing havoc in markets, even for traditional safe-haven assets.

The Iran war adds a lot of uncertainty, which would in theory boost demand for gold, said Aakash Doshi, global head of gold and metals strategy at State Street Investment Management. But instead, the precious metal has been overwhelmed by broader economic forces, he noted.

A big factor has been the conflict's role in potentially ending the Federal Reserve's interest-rate-cutting cycle - and maybe even ushering in rate hikes. There has also been a rebound in the U.S. dollar DXY, Doshi told MarketWatch, as well as profit-taking and some use of the metal as a "liquidity sleeve to raise cash."

On Comex, the most active, April contract for gold (GCJ26) (GC00) fell $30.80, or 0.7%, to settle at $4,574.90 an ounce Friday. It logged a weekly loss of 9.5%, which was the largest one-week percentage decline for a most active contract since Sept. 23, 2011, according to Dow Jones Market Data. For the month, the precious metal has lost 12.8%. ..........

https://www.morningstar.com/news/marketwatch/20260320264/gold-isnt-your-safe-haven-in-this-war-it-just-logged-its-biggest-weekly-drop-in-over-14-years

[MeganC]

Gold is a hedge and not an investment. You buy gold and silver for the same reasons you buy fire extinguishers and ammunition: Because if you ever need them it's too late to go get them.

 

[libertybele]

Gold is a hedge and not an investment. You buy gold and silver for the same reasons you buy fire extinguishers and ammunition: Because if you ever need them it's too late to go get them.

 

I say gold is both a hedge and an investment. Obviously physical gold doesn't pay a dividend but it sure is nice to have when the price rises and depending on when you bought it, it gives you a little extra purchasing power should you need it.

[MeganC]

I say gold is both a hedge and an investment. Obviously physical gold doesn't pay a dividend but it sure is nice to have when the price rises and depending on when you bought it, it gives you a little extra purchasing power should you need it.

With the USA some $40 trillion in debt and the fiat dollar starting to go the way of the Weimar Mark then a monetary collapse can happen rapidly. Once the decline starts then within a few days the dollar could become worthless. In that moment , gold and silver would be necessary simply for obtaining the necessities of life.

If there are any advantages outside of that to be gained by holding gold and silver then yay! But that is not why my family has these things. We are just being cautious.