But the underlying drivers of this so-called flight to quality – a term coined by larger traders whose access to finance has remained robust – are deeply established.¹⁾

A flight-to-quality, or flight-to-safety, is a financial market phenomenon occurring when investors sell what they perceive to be higher-risk investments and purchase safer investments, such as gold and other precious metals. This is considered a sign of fear in the marketplace, as investors seek less risk in exchange for lower profits.²⁾