Gold Drops 23% Since February as Middle East Tensions Resurface
Gold fell as much as 1.2% toward $4,000 an ounce as renewed US-Iran attacks in the Persian Gulf disrupted shipping, while the metal remains down 23% since February amid inflation concerns.
Gold prices extended their decline on Monday, falling as much as 1.2% toward $4,000 an ounce as renewed military clashes between the United States and Iran in the Persian Gulf rattled markets. The move comes after gold had rallied more than 2% over the previous two sessions, highlighting the volatile trading environment. The precious metal has now dropped 23% since February, weighed down by persistent inflation fears and shifting expectations for central bank policy.
The latest escalation involved a tanker carrying Qatari crude being hit during weekend retaliation, disrupting shipping through the Strait of Hormuz, a critical chokepoint for global oil supplies. While oil prices initially climbed on the news, gold's reaction was more muted, suggesting that inflation concerns tied to higher energy costs are overriding safe-haven demand. Higher oil prices could keep central banks cautious on interest rates, reducing the appeal of non-yielding bullion. Live gold prices and charts on NowPrice show how the market is reacting to these crosscurrents in real time.
Traders will now focus on diplomatic developments, with the possibility of talks resuming this week. Any signs of de-escalation could ease inflation fears and support gold, while further attacks may deepen the selloff. Key levels to watch include the $4,000 psychological support and resistance near recent highs around $4,200. The broader trend remains bearish as long as inflation and rate expectations stay elevated.