Gold Rally Stalls as Middle East War Fails to Lift Safe-Haven Demand

After the war between the United States and Iran began on Feb. 28 local time, gold prices have paused instead of following the usual wartime pattern of rising as a safe-haven asset. Gold has long been viewed as a store of value because it has no issuing authority and can retain value even during national crises. It often rose during wars or when U.S. President Donald Trump pursued trade conflicts. This Middle East war, however, has brought a different market response. Gold moves with daily developments, but overall investors appear cautious. Analysts say the sharp rise in international oil prices after the war increased pressure on major economies to raise benchmark interest rates, weakening gold’s appeal because cash can look more favorable when rates climb. Some also point to profit-taking after last year’s strong gold gains. Source: rss.donga.com