The decline continues: War turns gold upside down

In global markets, gold has lost value for eight consecutive trading days due to the ongoing war in the Middle East and rising tensions between the US and Iran. The ounce price of gold fell to the 4,320.30 dollar level with a decline approaching 3.8 percent, losing most of the gains it had achieved since the beginning of the year.

One of the main reasons for the sharp fluctuation was cited as the mutual threats of attack between Iran and the US and the gradually escalating tension in the region. According to experts, the rising oil prices since the beginning of the conflict strengthen the danger of global inflation, while reducing the probability of the US Federal Reserve (FED) and other major central banks going for interest rate cuts in the short term.

Analysts emphasize that with this series of declines occurring for eight days in a row, the highest value loss on a weekly basis since 1983 has been experienced. In addition, the fact that investors in the market are selling gold to balance losses in other assets in their portfolios stands out as another factor effective in the decline in prices.

Experts state that this tension will continue to increase volatility in the markets after US President Donald Trump's harsh statements regarding energy facilities in Iran. Analysts also stated that when looking at technical indicators, a recovery in the price of gold could be seen in the short term.

News Source: 12punto