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Middle East War: Why Money Is Rushing to the Dollar, Not Gold

Gold prices are slightly weaker, weighed down by a stronger U.S. dollar and rising Treasury yields. Despite escalating tensions in the Middle East and ongoing strikes involving Iran, safe-haven demand has not translated into a sustained rally in precious metals.

Instead, investors have moved rapidly into the dollar and U.S. government bonds. Markets are grappling with a surprising reality: even in what many analysts describe as one of the most destabilising geopolitical events in decades, gold has struggled to hold its gains.

If war does not immediately drive gold higher, what does that tell us about the role of the dollar… and the role of gold? Why is the dollar rallying instead of gold?

In this new video, we explore why the dollar often rallies first during geopolitical shocks… and why gold’s role as monetary insurance may become even more important as the global financial system grows more political and uncertain.


 

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