Safe-haven demand
During financial stress or geopolitical shocks, some investors buy gold as a store of value. This is called safe-haven .
In acute crises, gold can also fall briefly as investors sell liquid assets to raise cash, as happened in March 2020 before prices recovered.
Key takeaways
- Uncertainty can lift gold demand.
- Forced selling can cause short-term drops.
Knowledge check
In March 2020, gold initially…
Key terms · hover or tap for a definition