Gold is rebounding after a sharp pullback, even as geopolitical risks and inflation pressures remain elevated.
BNN Bloomberg spoke with Joy Yang, global head of index product management at MarketVector Indexes, who said recent weakness reflects investors raising cash and repositioning portfolios rather than a shift in long-term demand.
Key Takeaways
- Gold’s recent decline was driven by profit-taking, deleveraging and investors raising cash after a strong rally to record highs.
- Short-term price moves are being shaped more by liquidity conditions and positioning than by geopolitical or macroeconomic fundamentals.
- Structural support for gold remains intact, including persistent inflation, geopolitical uncertainty and ongoing diversification trends.
- Gold continues to act as a liquid portfolio diversifier, particularly during periods when traditional stock-bond relationships break down.
- Emerging markets and alternative assets, including gold and Bitcoin, present diversification opportunities, though performance varies by region and asset type.
Read the full transcript below:
LINDSAY: Gold has seen some gains after dropping in 10 of the past 12 sessions. Our next guest says gold still stands out as a highly liquid, time-tested diversifier when markets are volatile. Joining me now is Joy Yang, global head of index product management at MarketVector Indexes. It’s great to have you join us. Thanks so much.
JOY: Thanks for having me.
LINDSAY: Gold is typically thought of as a safe haven. Why have we been seeing it sell off so much over the last couple of days and weeks?
JOY: I think it’s important, number one, for investors to remember that just because something is a safe haven or a defensive asset does not mean it’s not volatile. What we’re seeing now, with gold falling and experiencing high volatility, seems counterintuitive, especially when we expect gold to rise during wars. But we’re not seeing investors play out the bull and bear case for gold. We’re seeing them focus on the short- versus long-term case around what’s happening in the markets now.
This war has come with a supply shock, rising prices and a liquidity squeeze. Investors are trying to raise cash where they can. With gold having risen through 2025 and hitting all-time highs, it’s an easy, liquid place for investors to take out cash to meet obligations.
LINDSAY: We saw gold hit record highs earlier this year. Was this kind of correction needed anyway for the metal?
JOY: Anytime you see a parabolic rise in price, you’re going to attract speculators and momentum-driven investors. Those participants want to take profits and exit. When gold peaked, it became a natural place for profit-taking, deleveraging and raising cash.
This is something many investors were anticipating, but at the same time, the long-term case for gold still stands.
LINDSAY: When it comes to gold, what’s the investment takeaway?
JOY: Investors need to think about whether they are already in gold or considering allocating to it, and focus on the long-term structural drivers. Those include geopolitical instability, a weaker dollar at times and persistent inflation.
Those dynamics have not changed and should continue to support gold. For investors with a long-term view who see gold as a diversifier, there is still a strong case.
LINDSAY: Other than gold, where are you seeing opportunities in the markets right now?
JOY: Gold miners are an interesting leveraged play on gold, with more equity-like characteristics. Beyond that, investors should think about diversification across alternative assets, including business development companies, private equity and private debt.
Some of these areas have been under pressure, but not all should be treated the same. Investors looking for diversification should consider a range of approaches. There’s also “digital gold,” like Bitcoin. Gold has thousands of years of history and a strong investor base, while Bitcoin is still evolving, balancing speculative and institutional participation, but it shares some similar characteristics.
LINDSAY: And Bitcoin is something you’ll be watching this weekend. Why is that?
JOY: Bitcoin trades around the clock and reflects real-time market sentiment. We’re watching how it behaves outside traditional market hours. Our crypto indicators are showing improving breadth across tokens, moving out of fear territory as markets digest news over the weekend.
LINDSAY: What about emerging markets? Are they a good opportunity for investors right now?
JOY: Emerging markets are interesting because they’ve been undervalued for a long time. They’ve also shown resilience through global shocks and tariff uncertainty, adapting and shifting opportunities.
We shouldn’t think of emerging markets as a homogeneous group. Commodity importers may face more pressure, while exporters, such as some Latin American markets, may benefit. There are opportunities, particularly if economies can adapt quickly.
LINDSAY: So just to clarify, are you suggesting staying away from Asian emerging markets right now?
JOY: I think they can still present opportunities if they are able to adjust to rising costs, including oil, food and manufacturing inputs. If they can pivot quickly, including through trade realignment, they remain an interesting area to watch.
LINDSAY: Lastly, looking at the broader picture, what’s your take on the direction of markets right now? The Nasdaq hit correction territory on Thursday. Do you think this was needed?
JOY: Investors are reacting to headlines, and sometimes there can be an overreaction. Historically, equity markets have moved past geopolitical shocks.
Trying to time these events is not a strategy that typically works well. It’s still prudent for investors to stay invested while maintaining a diversified portfolio.
LINDSAY: We’ll leave it there. Joy Yang, global head of index product management at MarketVector Indexes. Appreciate your time. Thanks for joining us.
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This BNN Bloomberg summary and transcript of the March 27, 2026 interview with Joy Yang are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
