Morgan Stanley Strategist Notes Diminished Safe-Haven Status of Gold

Deep News
04/10

According to Morgan Stanley, following a period of significant volatility in commodity prices over the past six weeks, gold's traditional role as a portfolio risk management tool is being questioned. Amy Gower, a metals and mining strategist at the firm, stated, "Gold is now behaving more like a risk asset than a safe-haven asset. Typically, it should serve as a diversification tool within a portfolio, but that is not currently the case." Gower acknowledged that a decline in gold prices after a market shock is "normal" as investors seek liquidity, but she pointed out that gold prices are increasingly being influenced by the trading activities of major holders, such as central banks and ETFs.

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