War in Middle East: Why did gold plummet instead of soaring? The inside story

• Gold prices surprisingly fell after US-Iran conflict, defying historical trends where gold usually rises during geopolitical tensions.
• Gold dropped from $5,244 per ounce on Feb 27, 2026, to $5,120 by March 6, after an all-time high of $5,418 on Jan 28, 2026.
• The strengthening US dollar, a competing safe haven, made gold more expensive, reducing demand; dollar index rose 1.49% in 5 days of war.
• Need for liquidity to buy expensive Brent crude (traded in dollars) led investors to sell gold for dollars, creating selling pressure.
• Federal Reserve's potential 'higher for longer' interest rates due to inflation threat makes US Treasury bonds more attractive than gold; central bank gold buying also slowed significantly.