Gold dropped 3.5% on Friday to $4,488 an ounce, closing out an 11% weekly decline — the metal’s steepest weekly fall since 1983 — as ongoing turmoil in the Middle East and related market uncertainty pressured prices.
Since Feb. 28, following strikes involving the US and Israel against Iran, gold has fallen more than 15%, erasing part of the rally that pushed prices toward $5,500 in late January. Data from TradingView shows the week of March 16–20 was the weakest for gold since 1983. That 11% slide slightly exceeded the volatility seen at the end of January, when gold spiked to roughly $5,320 before plunging to about $4,650 — a shift that eliminated more than $2 trillion from the metal’s market capitalization within days.
The conflict has also disrupted global oil flows, particularly through the Strait of Hormuz, raising concerns about a prolonged energy squeeze. Meanwhile, President Donald Trump said he is considering “winding down” military operations in the region even as the US has deployed thousands of additional troops and airstrikes continue.
On the economic front, traders largely expect the US Federal Reserve to keep interest rates on hold this year, a stance that tends to favor yield-bearing assets like bonds over non-yielding gold. Federal Reserve Chair Jerome Powell warned that rising energy costs could lift inflation in the near term, which adds another layer of uncertainty for markets.
In crypto markets, Bitcoin has recouped some of its losses against gold this month. Over the past 12 months, gold has gained about 48.5% while Bitcoin has fallen roughly 16.5%. But since the Feb. 28 strikes, Bitcoin has outperformed gold, rising more than 11.6% to trade near $70,535.
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