Gold just saw its worst week in decades. This is how the Iran war is contributing.
Straight Arrow News - SAN • • business
Key Points:
- Gold experienced its worst weekly decline since 1983, dropping 11% amid uncertainty from the Iran war, closing around $4,497 per ounce after starting the week above $5,000.
- Rising oil prices, driven by the conflict, have led traders to anticipate central banks raising interest rates to combat inflation, negatively impacting gold since it does not yield interest.
- Holdings in bullion-backed ETFs have decreased by over 60 tons in the past three weeks, reflecting a sell-off despite gold’s historical role as a safe haven during geopolitical tensions.
- Experts attribute the gold price decline to factors including margin calls, increased risk aversion, a stronger U.S. dollar, profit-taking, and stop-loss triggers following earlier price peaks above $5
