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\n\t\t\t\t\t\t\t\t\tIn times of major geopolitical and macroeconomic uncertainty, investors usually flock to the safe haven of gold, but this time is different.\u00a0\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
Gold prices are falling sharply, with precious metal dumping 8% so far this week and behaving more like Bitcoin than a stable store of value in times of economic uncertainty.<\/p>\n
The metal is now down 15% from its late January all-time high of $5,500 per ounce, slumping to a ten-week low of $4,550 on Wednesday, according<\/a> to GoldPrice.<\/p>\n \u201cGold was supposed to hedge the Iran war \u2013 instead it traded like everything else: down,\u201d wrote Bloomberg analysts on Tuesday.<\/p>\n<\/blockquote>\n The big move is something that is expected in volatile crypto markets, not stable gold.<\/p>\n \u201cIt\u2019s a harsh but necessary reminder that the metal is little correlated with stocks and can behave just like another risk asset when liquidity tightens.\u201d<\/p>\n<\/blockquote>\n Bloomberg ETF analyst Eric Balchunas observed that gold was an \u201cunreliable hedge.\u201d Bitcoin is similar, but with more correlation with stocks, he said.<\/p>\n \u201cBoth unpredictable but valid asset classes, and shouldn\u2019t be judged based on short time frames.\u201d<\/p>\n<\/blockquote>\n Wrote today about how investors just got a big-time reminder that gold has *zero* correlation to stocks, not inversely correlated. Big difference. Good diversifier but unreliable hedge. Bitcoin is similar but w more correlation (0.45) w stocks. Both unpredictable but valid asset\u2026 pic.twitter.com\/ZnTXECn9pZ<\/a><\/p>\n \u2014 Eric Balchunas (@EricBalchunas) March 24, 2026<\/a><\/p>\n<\/blockquote>\n Earlier this week, goldbug Peter Schiff said<\/a>, \u201cIf you were bullish on gold before the war, you should be more bullish now.\u201d<\/p>\n \u201cThe war means soaring US budget deficits, skyrocketing food and energy prices, recession, rising unemployment, collapsing stock, bond, and real estate prices, increased terrorism, and a financial crisis.\u201d<\/p>\n<\/blockquote>\n However, it appears that investors don\u2019t agree, judging by this week\u2019s violent sell-off in the precious metal.\u00a0CNBC reported<\/a> on Tuesday that gold is in bear market territory as a stronger US dollar and elevated Treasury yields continue to dull the yellow metal\u2019s allure.<\/p>\n In a separate post, Balchunas said that Bitcoin ETFs have now seen $2.5 billion inflows for the month and are \u201cone good day away from completely digging out of their year-to-date flow hole.\u201d<\/p>\n \u201cAgain, incredible fortitude in the face of 40% six month price drop and widespread media pile on.\u201d<\/p>\n<\/blockquote>\n For context, when gold fell 40% in a short time frame about ten years ago, it saw a third of its investors bail, he added.<\/p>\n Spot Bitcoin prices are holding<\/a> around $70,000 at the moment and remain in a sideways channel that began in early February. However, it does seem to be making higher highs and higher lows, which could be considered bullish.<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\n <\/p><\/div>\n\n
Gold Little Correlated With Stocks<\/h2>\n
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Bitcoin ETFs Performing Well<\/h2>\n
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