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Gold surged during the 12-day war with Iran last year and then gave up its gains when a ceasefire was announced. But, two weeks into the latest conflict, its price remains largely unmoved.
Gold rose from $5,296 to $5,423 per troy ounce after the U.S. and Israel launched strikes on Iran on Feb. 28, aligning with the axiom that geopolitical turmoil pushes investors toward traditional “safe haven” assets.
But a sell-off saw prices fall more than 6% to $5,085 on March 3. This week, as the conflict has escalated, it has traded between $5,050 and $5,200. Spot gold was last seen trading at $5,175 per troy ounce.
Several factors can explain the lack of upward momentum, including a stronger dollar and higher Treasury yields, according to Ross Norman, CEO of precious metals website Metals Daily.
