WATCH: Why has the price of gold fallen since the start of the Iran war?

Gold prices have fallen 13% since the outbreak of war with Iran, defying the traditional expectation that investors flee to the precious metal during geopolitical crises. Historically, gold serves as a safe-haven asset that typically gains value when global uncertainty rises, as investors seek stability outside volatile markets. The decline suggests either that markets are pricing in a swift resolution to the conflict, or that investors are shifting capital to other perceived safe assets like U.S. Treasury bonds or the dollar. This reversal challenges a fundamental assumption in commodity markets and may indicate changing investor behavior during international conflicts. The movement is being closely watched as a potential signal of market confidence—or lack thereof—in the trajectory of the Iran conflict.