"When there is a need for margin calls to be met elsewhere or when there is pressure for cash, gold tends to be one of the first candidates that investors consider... We think it could remain under pressure for some time yet." During severe cross-asset selloffs, gold loses its safe-haven status temporarily because it is a highly liquid asset that investors sell to raise cash. This distress selling creates a mechanical headwind for gold that can last for weeks until leveraged positioning is flushed out. WATCH gold for a better entry point. Wait for the margin-call liquidations to subside and for the asset to find technical support (around the 50-day moving average) before initiating long positions. A sudden escalation in the Middle East triggers panic buying that overwhelms the liquidity-driven selling pressure.