How will the Iran-Israel war affect gold prices?

A war between these two regional powers would shake not only the Middle East but also global financial markets.

The first effect can be seen in gold prices. Why?

🛡️ Gold = Safe Haven

Throughout history, during geopolitical crises, investors move away from risky assets and turn to gold.

A scenario like an Iran-Israel war increases global uncertainty → investors seek refuge in gold → prices rise rapidly.

⛽ Oil & Inflation Impact

If Iran enters into conflict, the Strait of Hormuz is put at risk → oil supply faces difficulties → prices surge → global inflationary pressure increases.

High inflation expectations increase demand for gold. Gold = protection against inflation.

💵 Dollar & Interest Balance

A war environment may make the U.S. Federal Reserve (FED) more cautious.

If interest rates do not rise, non-yielding gold becomes attractive.

If the dollar weakens, this also supports gold prices.

What Does History Tell Us?

1979 Iranian Revolution: Gold +120% (in 12 months)

1990 Gulf Crisis: Gold +10%

2020 Soleimani Tensions: Gold +4% (in 2 days)

📊 War can cause sudden jumps in gold prices.

Conclusion:

The possibility of an Iran-Israel war is a strong catalyst for gold prices:

✅ Increase in geopolitical risk

✅ Oil and energy shocks

✅ Inflation expectations

✅ Search for a safe haven

All of these push gold upwards.

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