Gold Prices Extend Losing Streak to 10 Days Amid Ongoing Iran War Uncertainty

Gold Prices Extend Losing Streak to 10 Days Amid Ongoing Iran War Uncertainty​

Bullion Decline Deepens Despite Temporary Pause in US Strike Plans​

Gold prices continued their downward trajectory for the tenth consecutive session as uncertainty surrounding the Iran conflict weighed heavily on investor sentiment. The precious metal has now declined nearly 17 percent since the onset of the war in late February, marking one of its sharpest corrections after a prolonged rally.

In the latest trading session, bullion dropped as much as 1.8 percent after briefly rising close to 1 percent earlier in the day. The volatile movement reflected broader market trends, with gold tracking equity performance and moving inversely to oil prices.

Mixed Signals from US and Iran Keep Markets on Edge​

Market uncertainty intensified following conflicting developments on the geopolitical front. US President Donald Trump announced a five day delay in potential strikes on Iranian energy infrastructure, citing productive discussions. However, an Iranian official dismissed the possibility of talks, while reports indicated that US allies in the Persian Gulf could become involved in the conflict.

Despite the temporary pause, concerns remain elevated over the long term impact of the war. Uncertainty continues around the safety of shipping routes through the Strait of Hormuz and the time required to restore damaged energy infrastructure.

Rising Energy Prices and Inflation Fears Pressure Gold​

The surge in energy prices due to the conflict has heightened inflation risks globally. This has led investors to shift away from gold, which is typically considered a liquid and profitable asset during periods of stress, toward other investments.

Gold had already fallen nearly 2 percent in the previous session, marking its ninth consecutive decline. The ongoing sell off now places bullion on track for its longest losing streak on record.

Higher inflation expectations are also increasing the likelihood of interest rate hikes by the US Federal Reserve and other central banks. Such a scenario tends to weigh on non yielding assets like gold.

Historical Trends Mirror Current Gold Market Behavior​

The current decline in gold prices reflects patterns seen during past crises. Following the Russian invasion of Ukraine in early 2022, gold initially surged before entering a prolonged period of decline as inflationary pressures spread across global markets.

A similar trend was observed during the 2008 financial crisis, where investors sold well performing assets such as gold to meet margin requirements in underperforming segments like equities and bonds.

Long Term Drivers Remain Intact Despite Sharp Correction​

Although gold has corrected sharply in recent weeks, its earlier rally was supported by strong fundamentals, including geopolitical tensions, trade uncertainties, and sustained purchases by central banks.

However, the current conflict has introduced new constraints. Countries that are major buyers of gold and also energy importers are now facing higher oil and gas bills, reducing their ability to allocate funds toward bullion purchases.

Precious Metals and Dollar Movement​

As of 9:16 a.m. in Singapore, spot gold was down 1.5 percent at $4,340.80 per ounce. Other precious metals also declined, with silver falling 3.3 percent to $66.81, while platinum and palladium registered losses.

Meanwhile, the Bloomberg Dollar Spot Index edged up 0.2 percent after declining 0.4 percent in the previous session, adding further pressure on gold prices.

Outlook Remains Uncertain​

While short term price movements continue to be influenced by market positioning and geopolitical developments, the broader outlook for gold remains tied to inflation trends, central bank policies, and the evolving situation in the Middle East.