economy
March 26, 2026
Why has gold lost almost a fifth of its value since the start of the war in Iran?
Gold is known as a safe haven, an asset that is "fled to" in times of crisis, when money, as well as other types of assets such as stocks or bonds, are expected to lose value.
TL;DR
- Gold prices have dropped significantly since March 1st, despite geopolitical tensions in the Middle East.
- This decline is unusual as gold is typically considered a safe-haven asset during crises.
- Experts suggest central banks and funds are selling gold to cover losses in other assets and to secure cash.
- Previous significant growth in gold prices may have prompted investors to cash in on profits.
- Other factors include central banks selling gold to purchase arms and the strengthening dollar with rising U.S. bond yields attracting investors to other assets.