Gold tumbled 3.5% to $4,488 per ounce on Friday, recording an 11% drop for the week — the largest weekly loss for the metal since 1983 — as ongoing geopolitical instability and uncertainty in the Middle East pressured markets.
Since Feb. 28, when the US and Israel first attacked Iran, gold has declined more than 15%, erasing part of the rally that pushed prices toward $5,500 in late January and challenging its safe-haven appeal. TradingView confirmed that March 16–20 was gold’s worst-performing week since 1983. That 11% weekly fall was slightly larger than the sell-off at the end of January, when gold surged to about $5,320 before plunging to $4,650 — a swing that wiped more than $2 trillion off the precious metal’s market cap in days.
The conflict with Iran is also disrupting global oil flows, particularly through the Strait of Hormuz, stoking fears of a prolonged energy crisis. US President Donald Trump said he is considering “winding down” military efforts in the region, even as the US has deployed thousands of additional troops and airstrikes continue.
At the same time, traders expect the US Federal Reserve to keep interest rates steady this year, which makes bonds and other yield-bearing assets more attractive relative to non-yielding gold. Federal Reserve Chair Jerome Powell noted that higher energy prices could push inflation up, at least in the short term.
Bitcoin has clawed back lost ground against gold this month. Over the past 12 months gold has gained about 48.5% while Bitcoin retraced roughly 16.5%. However, since the Feb. 28 strikes, Bitcoin has outperformed, rising more than 11.6% to around $70,535.
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