Dutch International: War Impact Challenges Gold's Safe-haven Status

The economics department of the ING Group in the Netherlands International Group stated in a report that since the outbreak of the Iran war, the price of gold has been falling, reflecting the nature of the war and its impact on the global economy. ING Group explained in a report: "The safe-haven appeal of gold tends to perform best during financial crises or growth shocks when real yields decline, and the US dollar weakens. "Supply-driven energy shocks will have the opposite effect." The institution pointed out that the 2022 Russian invasion of Ukraine was a similar situation, with gold falling by about 4% in 2022 according to FactSet data. "After the initial rebound, as inflation effects from rising energy prices push up yields and the US dollar, gold faces pressure," ING Group said. "The same dynamics are playing out here, just at a faster rate." The most actively traded gold futures rose by 0.4%.