News Desk
LONDON: Sharp swings in global gold prices have unsettled investors, raising questions about whether the metal still holds its status as a safe-haven asset amid geopolitical uncertainty.
According to international media reports, gold prices surged nearly 4% in a single day to above $4,550 per ounce following remarks by US President Donald Trump بشأن potential talks with Iran.
The rally came after Trump संकेत that Iran had made an “offer” related to energy transit through the Strait of Hormuz, which markets interpreted as a possible step toward easing tensions. Reports suggest negotiations could begin الخميس, although Tehran has yet to issue an official response.
Market reacts swiftly
After nine consecutive sessions of decline, traders резко shifted strategy, increasing gold purchases. Market strategist Naveen PMT told NDTV that the surge reflected a news-driven reaction rather than a fundamental shift in investor confidence.
He explained that markets were moving from war fears to hopes of peace, prompting short sellers to close positions, which pushed prices higher.
Bigger picture remains unclear
Despite the recent rebound, gold remains about 20% below its January 2026 peak of $5,626 per ounce, leaving investors uncertain about its long-term direction.
Dr Renisha Chainani, head of Augmont Research, said liquidity pressures were currently outweighing geopolitical factors. In times of financial stress, investors often sell gold to raise cash, causing prices to fall despite its traditional safe-haven appeal.
Interest rates and inflation pressure
Rising oil prices are fueling inflation, which could keep interest rates elevated for longer. Higher real yields tend to weigh on gold, as the metal does not offer interest returns.
Central banks stay cautious
Experts noted that while central banks have slowed their pace after heavy buying over the past two years, they remain net buyers overall as part of efforts to reduce reliance on the US dollar.
Analysts say that despite short-term volatility, gold has not lost its fundamental appeal. While it may behave like a risk asset in the near term, it continues to serve as a hedge against inflation, currency weakness, and global financial instability over the long run.
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