Is gold still the safe haven it was? Research suggests it has lost its lustre

Gold is no longer the certain safe haven it once was, researchers at the University of Cape Town’s (UCT’s) Department of Finance and Tax have discovered. The yellow metal lost this status as a result of the Covid-19 pandemic, they found. The research team studied how both “hard” commodities, namely gold, silver and platinum, and “soft” commodities – corn, soybeans, wheat and livestock – moved relative to major US industry sectors, such as energy, healthcare, real estate and tech, when the markets were experiencing turmoil. They gave extra focus to the Covid crisis.

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