Is Gold Losing Its Hedge — When Safe Havens Fail, What's Left?

Gold's traditional role as a safe-haven asset is weakening as it declines 4.3% in June following stronger-than-expected U.S. nonfarm payrolls, erasing year-to-date gains. Rising interest rate expectations and higher opportunity costs for non-yielding assets are driving investors toward yield-bearing alternatives like TIPS and short-duration Treasuries. However, central banks continue accumulating gold, providing structural support despite short-term weakness.