The decline in gold (spot prices at one point fell by as much as 3.2%) might surprise some, considering the metal’s long-standing reputation as a safe-haven asset. In fact, history shows that in times of intense turmoil, gold also tends to weaken as some traders are forced to cover unexpected margin calls when assets fall across the board. Goldman Sachs Group Inc., which remains very optimistic about the prospects for bullion, suggested that such dynamics may have been at play during Monday’s session.

The precious metal could “suffer from negative spillovers from broader market routs as investors liquidate gold positions to cover margins calls,” analysts, including Daan Struyven, stated in a note while reaffirming the bank’s target for gold to rise to a record $2,700 an ounce by 2025.
Source: https://finance.yahoo.com/news/unexpected-winners-losers-markets-went-080546304.html

I believe the same can be said for the cryptocurrency market, which was heavily impacted by the global sell-off on Monday: Bitcoin (BTC-USD) briefly traded below $50,000, and Ethereum (ETH-USD) experienced its largest one-day drop since 2021. Margin calls forced investors to hit the panic button.