If gold breaks lower, investors may look at these safe haven currencies: analyst Sam Boughedda Mon, November 2, 2026 at 7:17 AM EST 2 min read GC=F +0.27% DX-Y.NYB -0.25% SI=F +1.74% JPY=X +0.23% GC Investing.com -- Standard Chartered told clients in a note on Monday that the U.S. dollar and Japanese yen could be the most attractive safe havens if gold extends its decline.
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Analyst Steve Englander noted that gold has fallen well below $4,000 an ounce, leaving it technically fragile in the near term.
The next key support levels are $3,800 and $3,500. Tech jitters, the equity sell-off and liquidity needs have triggered selling of highly liquid assets such as gold and silver.
"In the short term, gold's role as a liquidity provider and the need to generate cash are likely to overshadow its role as a safe-haven asset," Englander wrote.
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Gold's correlation with the dollar has been strongly negative over the past year, suggesting investors may have sold dollars to buy gold. Englander said this flow could reverse.
"We expect the USD and JPY to outperform if gold keeps falling," he said.
Standard Chartered said the list of attractive safe havens has shrunk. The euro is tarnished by political and fiscal uncertainty, the Swiss franc is the lowest-yielding G10 currency, and sterling faces political questions. The Australian dollar is much more volatile.
"So the USD stands out if gold is sold in risk-off circumstances," the analyst said.
Englander added that central banks looking to limit their dollar exposure may turn to the yen. He noted that the recent yield pickup in Japanese government bonds should make the currency attractive, and the yen's low beta, relatively low valuation, and restored yield could help it benefit if risk-off conditions are driven by asset markets rather than oil.
If gold breaks lower, investors may look at these safe haven currencies: analyst
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