Gold falls below $4,500 after US strikes on Iran

Gold prices fell sharply this week, breaking below a key technical level as renewed military action and diplomatic uncertainty in the Middle East created a complex dynamic that weighed on the precious metal’s traditional role as a safe-haven asset. The price of spot gold dropped below $4,500 per ounce, extending a decline that has persisted since late February.

The selloff was triggered by a series of U.S. military strikes on targets within Iran, which U.S. Central Command described as defensive actions against missile launch sites and minelaying boats. These strikes dampened recent market optimism that had been building around diplomatic negotiations to reopen the Strait of Hormuz, a critical global oil transit route. While U.S. officials, including Secretary of State Marco Rubio, indicated that talks with Iran were progressing and could yield a deal within days, the renewed hostilities introduced fresh uncertainty.

Analysts noted that the market reaction highlighted an unusual pressure on gold. Typically, geopolitical escalation drives investors toward gold as a store of value. However, in this instance, the conflict’s potential to disrupt energy supplies pushed oil prices...