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Geopolitical Tensions Drive Safe-Haven Flows

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Escalating US-Iran tensions are reshaping global capital flows, with traditional safe-haven assets like gold attracting significant investor interest. This flight to safety reflects heightened risk aversion, as geopolitical uncertainty prompts portfolio reallocations away from risk-on assets. The dynamic underscores gold's enduring role as a hedge during periods of market stress.

Meanwhile, equities and Bitcoin are facing downward pressure as investors reduce exposure to volatile assets. This divergence highlights how geopolitical events can create distinct performance patterns across asset classes, with cryptocurrencies currently correlating more closely with risk assets than with traditional hedges. Market participants are closely monitoring developments for potential escalation or de-escalation signals.

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