XAU (GOLD) What Happens?

Geopolitical crises, such as the Iran-Israel war, especially when occurring in the Middle East, usually have an upward effect on gold prices.

Previously:

1. US-Iran Tension (2020 - the assassination of Qasem Soleimani)

Gold rose by more than 4% within a week.

2. Israel-Gaza Wars (2021, 2023)

Short-term spikes in gold prices were observed.

3. April 2024 - After Iran's attack on Israel

Gold surpassed 2400 $ , reaching an all-time high.

When Does It Drop?

If the war is short-lived and does not escalate to major economies, although the initial reaction may be upward, there could be a pullback due to profit-taking later.

If signals of peace emerge or a diplomatic solution comes to the forefront, the gold price may drop.

Start of war 📈 Rise

Threat to energy supply 📈 Rise

Weakening of the dollar 📈 Rise

Peace / diplomacy 📉 Drop

Short-term conflict 📉 Correction