The escalation of the conflict with Iran has significantly affected global oil markets, creating problems in supply chains and raising concerns about a long-term war. Meanwhile, while gold is usually seen as a safe asset in times of economic uncertainty, this time it has seen a sharp decline.
The price of gold has lost about 10% this week alone, heading for its weakest performance in 43 years and bringing its total decline to about 13% since the start of the conflict.
In such tense situations, investors typically turn to gold as a hedge against inflation, currency devaluation or financial crises. However, rising energy prices due to tensions in the Middle East are forcing central banks to review interest rate policies, a factor that directly affects the value of gold.
Also, market volatility has led to a strengthening of the US dollar and prompted investors to review their financial positions.