JPMorgan strategists have issued a direct warning to investors, declaring gold an unreliable hedge after its price failed to rally during recent geopolitical tensions with Iran, instead experiencing a sharp selloff. This unexpected behavior challenges gold's traditional safe-haven status, with the bank now categorizing it strictly as a cyclical investment asset rather than a protective hedge, signaling a potential fundamental shift in its market role.

Gold Is Not a Hedge Anymore?

According to Tai Hui, chief market strategist, Asia Pacific, at JP Morgan Asset Management, gold is not a compelling hedge asset anymore. Hui went ahead to label gold as a lucrative investment asset rather than a hedge, stating how it did not “work as a hedge against geopolitics.” Hui later shared how the yellow metal has not been consistent during the present war narratives, presenting it in a new light.

Gold price has fluctuated throughout the US-Iran war dynamics, a scenario that should have favored gold prospects. Moreover, the rapid selloff during the war ended up hurting gold’s price by pushing it down nearly 24% off its peak. Hui emphasized the aforementioned development, adding how investors continue to treat gold as a hedge asset despite its price delivering a low revenue performance during such intense economic chapters globally.

Gold As An Investment Tool

Gold is now being considered as a heavy-league investment asset, with high potential to spike in the future. Experts like Rashad Hajiyev have constantly been tracking the asset, commenting on how it’s meant to breach $7K and more.

I think gold is going to recover to $5k fairly quickly where the major battle is going to take place. Once gold overcomes this resistance, I believe gold is going to reach $7k plus within 3 months. To sum up gold could be trading at $7k plus by July 2026… pic.twitter.com/w4huKJ6YLV