Gold Prices Plunge Alongside Metals Complex, But Trade War Could Renew Safe-Haven Demand – ING

Gold prices have dropped sharply from last week’s all-time highs, with the broader metals complex also suffering significant losses, according to commodity strategists Ewa Manthey and Warren Patterson at ING.

Despite gold’s traditional role as a safe-haven asset, it has not been immune to the widespread market sell-off. “Even gold – traditionally a safe haven – tumbled from a record high it had reached earlier last week as investors sold off the precious metal along with other asset classes to cover losses elsewhere,” ING analysts said.

However, the experts at ING believe this downturn may be temporary.

“With trade tensions escalating and global economic uncertainty rising, safe-haven demand for gold is likely to return,” they noted. “Investors typically flock back to gold in times of prolonged financial instability, and we expect geopolitical risks to reignite bullish momentum.”

As market volatility continues and President Trump’s sweeping tariffs stir up fears of a global recession, analysts suggest that gold could soon regain its upward trajectory.