Gold is attempting to rebound after recording its worst October performance since 2008. However, renewed market jitters are changing the way investors are using the metal: instead of serving as a traditional safe haven, gold is becoming a source of cash as investors seek liquidity.
Suki Cooper, Standard Chartered’s global head of commodities research, outlined the pressure facing gold near the $4,000 level and where support could potentially emerge. Her assessment also points to more difficult conditions for silver, which is facing stronger headwinds than gold.
The market’s focus remains on whether gold can stabilize after its sharp October decline and regain its role as a defensive asset while investors navigate heightened uncertainty.
Sources: Bloomberg Markets.