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Gold Prices Slip Amid Mideast Tensions
(MENAFN) Spot gold dropped below $4,500 per ounce early Thursday, extending recent losses as ongoing conflict in the Middle East continues to fuel market instability and weigh on bullion, according to reports.
Gold was trading at $4,426.50 per ounce as of early Thursday, down 1.6% for the day. The decline follows a period of sharp and erratic selloffs, with prices falling roughly 15% since the conflict began on February 28, trading well below the January 2026 peak of $5,595 per ounce.
Last week marked the largest weekly drop in gold prices since 1983, with a loss exceeding 10%. Silver also fell amid the market turbulence, sliding over 2% to $69.73 per ounce.
The fluctuations came amid mixed signals from US and Iranian officials. While authorities in Washington emphasized that peace talks are ongoing, Tehran rejected US proposals and outlined its own demands, including asserting sovereign control over critical shipping routes.
Although gold is typically considered a safe-haven asset during geopolitical crises, rising oil prices and heightened inflation concerns have increased expectations that interest rates may remain elevated, diminishing bullion’s appeal.
The Middle East conflict has also unsettled broader financial markets by driving energy prices higher and raising fears of supply disruptions, particularly through the Strait of Hormuz, as stated by market analysts.
Gold was trading at $4,426.50 per ounce as of early Thursday, down 1.6% for the day. The decline follows a period of sharp and erratic selloffs, with prices falling roughly 15% since the conflict began on February 28, trading well below the January 2026 peak of $5,595 per ounce.
Last week marked the largest weekly drop in gold prices since 1983, with a loss exceeding 10%. Silver also fell amid the market turbulence, sliding over 2% to $69.73 per ounce.
The fluctuations came amid mixed signals from US and Iranian officials. While authorities in Washington emphasized that peace talks are ongoing, Tehran rejected US proposals and outlined its own demands, including asserting sovereign control over critical shipping routes.
Although gold is typically considered a safe-haven asset during geopolitical crises, rising oil prices and heightened inflation concerns have increased expectations that interest rates may remain elevated, diminishing bullion’s appeal.
The Middle East conflict has also unsettled broader financial markets by driving energy prices higher and raising fears of supply disruptions, particularly through the Strait of Hormuz, as stated by market analysts.
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