Spot Gold Falls Below $4,500 Amid Middle East Conflict Volatility
ISTANBUL – Spot gold prices fell below $4,500 per ounce early Thursday, extending losses as ongoing tensions in the Middle East continue to drive market volatility.
Sharp Decline in Gold Prices
Gold traded at $4,426.50 per ounce as of 0605GMT on Thursday, down 1.6% for the day. Prices have fallen 15% since the conflict began on February 28, trading far below the January 2026 record high of $5,595 per ounce. Last week, gold suffered its largest weekly drop since 1983, falling more than 10%.
Silver also saw a decline, dropping over 2% to $69.73 per ounce.
Market Volatility and Geopolitical Tensions
The market swings followed mixed statements from U.S. and Iranian officials. While the White House affirmed that peace talks are ongoing, Tehran rejected U.S. proposals and presented its own demands, including sovereignty over the strategic shipping route.
Although gold is traditionally considered a safe-haven asset, rising oil prices and concerns over persistent inflation have increased expectations that interest rates could remain high, reducing the appeal of non-yielding bullion.
Broader Financial Impact
The Middle East conflict has unsettled global markets, pushing up energy prices and raising concerns over supply disruptions, particularly through the Strait of Hormuz.
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