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Gold's recent drop is due to liquidity selling, not loss of safe-haven status, with recovery expected soon.

Market News
31 Mar 2026
Seeking Alpha
View Source
Bullish
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Gold prices recently fell amid geopolitical turmoil due to liquidity-driven selling rather than a loss of its safe-haven appeal. This decline aligns with historical patterns where gold underperforms during supply-shock inflation and high real yields, causing forced liquidations. The current phase is expected to be followed by a strong recovery once liquidity stress eases. Investors are advised to tactically increase gold exposure, with a recommended portfolio allocation of 5–15% to balance risk and opportunity.

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