- During armed conflict in the Middle East, gold behaves atypically and shows high volatility.
- On March 20, the price of the precious metal fell by 3,5%, which was the sharpest drop in the last 43 years.
Geopolitical tensions and uncertainty surrounding developments in the Middle East continue to weigh on markets. As a result, on the last trading day of the week, March 20, gold closed the sharpest decline over the past 43 years, falling 3,5% to $4,488 per ounce.
Overall, this week (March 16–20) was the worst for gold since 1983. During this period, the precious metal fell 11%. This was greater than the decline seen in the last week of January, when the price soared to $5,320 and then fell to $4,650. At that time, its market capitalization shrank by more than $2 trillion in just a few days.
Since February 28, when the US and Israel first struck Iran, gold has fallen more than 15%. This has erased part of the rally that took gold to $5,500 per ounce in late January and called into question the precious metal’s status as a safe-haven asset.
Bitcoin has responded somewhat better to the conflict in Iran, rising more than 11,6% to $70,535 since the first attack on the Middle Eastern state.
Yet, over the past 12 months, the precious metal has outperformed BTC, rising 48,5%, while kriptovalyuta over the same period, it fell in price by 16,5%.
Currently, the price of Bitcoin has managed to recover to the level of $70,709, showing an increase of 0,2% over the past 24 hours.
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