Capitals, March 29 (SANA) Global gold markets are experiencing volatility amid escalating tensions between the United States and Iran, as geopolitical developments have led to sharp increases in oil prices and strengthened the U.S. dollar, directly impacting gold, which has lost some of its appeal as a safe haven.
Inflationary pressures resulting from military tensions have boosted demand for the dollar, reducing gold’s attractiveness worldwide.
According to international economic experts, disruptions to supplies through the Strait of Hormuz have caused a sharp surge in oil and gas prices, increasing global energy costs and intensifying inflationary pressures on importing economies.
For its part, Bloomberg noted that some central banks have begun selling part of their gold reserves to secure the dollars needed to finance rising energy imports. Reports indicate that the Turkish central bank sold $8 billion worth of gold to support the lira, reflecting mounting pressure on emerging economies.
Bloomberg added that if other central banks follow similar steps, this could further push gold prices lower, as some energy-importing countries may need to sell gold reserves to meet rising oil and gas costs and increase dollar liquidity.
In recent weeks, markets have also seen gold used as a liquidity asset to cover losses before gradually returning to its traditional role as a store of value. However, this recovery remains fragile due to the continued strength of the dollar, high energy prices, tighter monetary policies, and central bank actions.
The combined impact of rising oil prices, a stronger dollar, and central bank decisions continues to shape gold market trends. Despite geopolitical tensions typically driving investors toward safe-haven assets, monetary and energy pressures are limiting gold’s upward movement.
N.J/ R.K
