Gold recorded its steepest weekly decline since 1983, falling 11% to around $4,488 per ounce as geopolitical tensions and macro shifts rattled markets.
The precious metal has dropped more than 15% since late February, reversing part of its earlier rally and raising questions about its traditional safe-haven role.
The sell-off comes as traders increasingly expect the US Federal Reserve to hold interest rates steady, reducing gold’s appeal relative to yield-bearing assets.
Federal Reserve Chair Jerome Powell said rising energy prices linked to the Iran conflict could push inflation higher in the near term.
At the same time, disruptions in oil supply through the Strait of Hormuz have added to uncertainty, with escalating conflict driving volatility across global markets.
Despite gold’s recent weakness, it remains up 48.5% over the past year, though bitcoin has gained ground recently, rising more than 11% since late February.
The divergence highlights shifting investor behaviour, with bitcoin showing resilience during geopolitical stress while gold faces pressure from interest rate expectations.
At the time of reporting, Bitcoin price was $69,320.29.