Demand for safe-haven assets has strengthened amid concerns over artificial intelligence (AI)-related volatility in technology stocks, the ongoing Iran war, elevated energy prices and mounting government debt. However, traditional havens have delivered mixed returns this year, highlighting the challenges investors face in protecting their portfolios during periods of market stress, Reuters reported.
Gold, which had surged to record highs, fell after the Iran war began as investors sold profitable holdings to cover losses elsewhere. Government bonds have also experienced significant volatility, with rising borrowing costs in major economies undermining their traditional appeal as defensive investments, Reuters reported.
