Gold fell another 3.5% to $4,488 an ounce on Friday, an 11% drop for the week and the biggest weekly loss the precious metal has seen since 1983, as geopolitical instability and uncertainty in the Middle East continue to weigh on markets.
Gold has fallen more than 15% since February 28, when the United States and Israel first attacked Iran, erasing some of the gains that pushed its price to $5,500 in tardy January and casting doubt on gold’s safe-haven status.
TradingView confirmed that March 16-20 was the worst week for gold since 1983. The 11% weekly decline was slightly larger than the last week of January, when the price of gold rose to about $5,320 before falling to $4,650, a decline that reduced the precious metal’s market capitalization by more than $2 trillion in a matter of days.
The war with Iran is also disrupting global oil flows, particularly in the Strait of Hormuz, raising fears of a prolonged energy crisis.
US President Donald Trump said on Friday that he was considering “ending” military efforts in the Middle East. However, as airstrikes continued, the United States sent thousands of additional troops to the region.
At the same time, investors expect the U.S. Federal Reserve to hold interest rates steady this year, making bonds and other yield investments more attractive than gold.
Federal Reserve Chairman Jerome Powell also noted Wednesday that higher energy prices will boost inflation, at least in the tiny term.
This month, Bitcoin made up for losses on gold
Gold has outperformed Bitcoin (BTC) over the past 12 months, rising 48.5%, while the cryptocurrency fell 16.5% over the same period.
Related: Bitcoin price is expected to remain at 70,000. dollars in the face of growing concerns about inflation
Bitcoin responded better to the conflict in Iran, but since the first attack by the United States and Israel on Iran, it has increased by more than 11.6% to $70,535.
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