07.03.2026 11:11
Amid fluctuations in the markets due to the US-Israel-Iran war, gold, seen as a safe haven, ended its five-week rising streak and closed the week with a decline.
The war between the USA, Israel, and Iran, which has been ongoing for eight days, has affected not only the region but also global markets. Gold, known as a safe haven, experienced a decline contrary to expectations, leaving investors caught off guard.
WAR AFFECTED MARKETS
As tensions rise in the Middle East due to the attacks by the USA and Israel on Iran and Iran's retaliations, the effects of the war are also felt in financial markets. On the eighth day of the conflict, while the parties continued their mutual attacks, markets fluctuated with the increase in geopolitical risks.
GOLD INVESTORS CAUGHT OFF GUARD
Typically, gold prices rise during wartime, but this time they did not show the expected movement. Closing the week before the war at $5,260 per ounce, gold rose to $5,419 on the first day of the week when the conflict began. However, this increase was short-lived, and one day later, gold fell sharply below $5,000.
FIVE-WEEK RALLY ENDS
During the week, gold partially recovered and rose above $5,000 again, closing the week at $5,163. Thus, gold lost 2.1% in value, completing the week with a decline for the first time after a five-week rally.
CURRENT STATUS OF GOLD PRICES
In parallel with the gold closing at $5,163, gram gold also showed a decline in Turkey. In the spot market, gram gold was trading at 7,301 lira, while the selling price in the Grand Bazaar reached 7,551 lira. The difference between the spot market and the Grand Bazaar was recorded at approximately 250 lira.
WHY DID GOLD FALL?
According to experts, markets priced in the risk of war before the conflicts began. Therefore, after the conflicts started, investors focused on the possibility of a ceasefire and the duration of the war.
Moreover, the strengthening of the dollar in global markets during the war environment put pressure on gold. The dollar index recorded its strongest weekly increase in a year, which reduced the demand for gold.
Additionally, due to the war, expectations for interest rate cuts by central banks have also been postponed. It is stated that the Federal Reserve is expected to keep interest rates unchanged at its meeting on March 18.