In Focus by The Hindu Has gold lost its safe haven status?
Mar 30, 2026
Kavita Chacko, Research Head for India at the World Gold Council, explains market flows, ETFs and investor behavior. B. Bhagwan Das, former economics professor, offers macro views on currency, central banks and trade. They explore why gold fell amid dollar strength and liquidity needs. They debate gold versus the dollar for safety and discuss allocations, central-bank buying and whether the dip is a buying opportunity.
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Gold Sales Fueled By Liquidity Needs
- Gold has been sold to raise liquidity after strong gains elsewhere, with investors using gold profits to cover losses in other assets.
- Kavita Chacko notes gold's strong returns over the prior year made it a convenient source of cash during market-wide selling.
Dollar Still The Primary Safe Haven
- Gold retains its safe-haven role but the US dollar is the primary safe haven because of liquidity and global trade use.
- B. Bhagwan Das explains dollars are more usable for transactions while gold is a store of value and wealth indicator.
Central Banks Drove Recent Gold Rally
- Central banks accumulated gold after Russia sanctions, pushing prices higher as reserve diversification intensified.
- B. Bhagwan Das cites BRICS and others buying gold to reduce exposure to international payments risk post-Ukraine.