Is Gold a Safe Haven? Gold Price Falls 27% From Its Record as Stocks Crash - CryptoTicker.io

AI desk brief

Gold fell 3.6% on Friday to $3,884.90/oz as US stocks sold off, leaving it 27% below its 29 January record close of $5,318.40 and down 7.2% for October. The piece argues this is consistent with prior crash episodes: gold often sells off in the acute phase when investors need liquidity, and the safe-haven bid tends to reappear only once central banks pivot to rate cuts.

Near-term pressure is being driven by expectations of further Fed tightening, with CME FedWatch pricing roughly an 80% chance of a December hike after two Fed officials voted for an increase at the 28 October meeting. The article also points to higher oil prices and Strait of Hormuz tensions as reinforcing inflation fears, which it says matter more for gold right now because they support the case for higher rates rather than immediate safe-haven demand.