Markets in chaos/ War in Iran leads to sharp decline in gold, dollar strengthens

2026-03-21 21:44:41Kosova&Bota SHKRUAR NGA REDAKSIA VOX
Markets in chaos/ War in Iran leads to sharp decline in gold, dollar strengthens
Illustrative photo

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.


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