Why the Iran War Has Caused Gold Prices to Drop
Gold is widely considered a safe-haven asset during periods of geopolitical uncertainty. However, since the outbreak of the Iran war, gold prices have fallen by around 13%, surprising investors who expected the metal to benefit from rising tensions. Other major assets have also declined, but not as sharply. The Nasdaq has lost roughly 8% while the S&P 500 is down about 7%. Meanwhile, Bitcoin has fallen only around 2%. Several factors help explain gold’s unexpected weakness. First, the metal had already experienced a remarkable rally before the conflict began, with investors responding to other geopolitical tensions, economic uncertainty and concerns…