No More Goldilocks for Gold? Here is What Changed

Gold has tumbled 17.2% since March 2nd even as Middle East geopolitical tensions persist and the threat of strikes on oil infrastructure rises. The disconnect suggests investor positioning, technical selling or liquidity factors are outweighing traditional safe‑haven flows into gold. If talks fail and oil infrastructure is targeted, renewed risk premia could reverse the recent gold decline and impact energy and commodity markets.

Analysis

Gold has tumbled 17.2% since March 2nd even as Middle East geopolitical tensions persist and the threat of strikes on oil infrastructure rises. The disconnect suggests investor positioning, technical selling or liquidity factors are outweighing traditional safe‑haven flows into gold. If talks fail and oil infrastructure is targeted, renewed risk premia could reverse the recent gold decline and impact energy and commodity markets.