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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.
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, <a href="https://goldprice.org/gold-price-chart.html" rel="noopener noreferrer nofollow">according</a> to GoldPrice.
<blockquote>
 “Gold was supposed to hedge the Iran war – instead it traded like everything else: down,” wrote Bloomberg analysts on Tuesday.
</blockquote>
<h2 id="gold-little-correlated-with-stocks">Gold Little Correlated With Stocks</h2>
The big move is something that is expected in volatile crypto markets, not stable gold.
<blockquote>
 “It’s a harsh but necessary reminder that the metal is little correlated with stocks and can behave just like another risk asset when liquidity tightens.”
</blockquote>
Bloomberg ETF analyst Eric Balchunas observed that gold was an “unreliable hedge.” Bitcoin is similar, but with more correlation with stocks, he said.
<blockquote>
 “Both unpredictable but valid asset classes, and shouldn’t be judged based on short time frames.”
</blockquote>
<blockquote class="twitter-tweet">
 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… <a href="https://t.co/ZnTXECn9pZ" rel="noopener noreferrer nofollow">pic.twitter.com/ZnTXECn9pZ</a>
 — Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/2036477652609941809?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">March 24, 2026</a>
</blockquote>
Earlier this week, goldbug Peter Schiff <a href="https://x.com/PeterSchiff/status/2036029218480369835" rel="noopener noreferrer nofollow">said</a>, “If you were bullish on gold before the war, you should be more bullish now.”
<blockquote>
 “The 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.”
</blockquote>
However, it appears that investors don’t agree, judging by this week’s violent sell-off in the precious metal.&nbsp;CNBC <a href="https://www.msn.com/en-us/money/markets/gold-prices-are-steady-after-heavy-sell-off/ar-AA1ZgDbl" rel="noopener noreferrer nofollow">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’s allure.
<h2 id="bitcoin-etfs-performing-well">Bitcoin ETFs Performing Well</h2>
In a separate post, Balchunas said that Bitcoin ETFs have now seen $2.5 billion inflows for the month and are “one good day away from completely digging out of their year-to-date flow hole.”
<blockquote>
 “Again, incredible fortitude in the face of 40% six month price drop and widespread media pile on.”
</blockquote>
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.
Spot Bitcoin prices are <a href="https://cryptopotato.com/bitcoin-dips-below-70k-as-reports-suggest-saudi-arabia-is-pushing-to-continue-iran-war/" rel="noopener noreferrer nofollow">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.
The post <a href="https://cryptopotato.com/gold-fails-safe-haven-test-as-prices-plunge-amid-war-and-uncertainty/" rel="noopener noreferrer nofollow">Gold Fails Safe Haven Test as Prices Plunge Amid War and Uncertainty</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Gold Fails Safe Haven Test as Prices Plunge Amid War and Uncertainty

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