Gold prices dip below $4,500 amid Middle East market turbulence
Spot gold extended its decline, falling below $4,500 per ounce as volatile trading linked to the Middle East conflict continued to weigh on bullion. Prices have dropped 15 percent since the war began on February 28, with last week marking the steepest weekly fall since 1983.
Spot gold slid further below the $4,500 threshold early Thursday, trading at $4,426.50 per ounce—a 1.6 percent decline—as uncertainty surrounding the Middle East conflict kept global markets on edge. The precious metal has shed 15 percent of its value since hostilities erupted on February 28, trading well below its January 2026 record peak of $5,595. Last week, gold recorded its largest weekly drop in more than four decades, losing over 10 percent in a single five-day period.
Conflict-driven volatility reshapes safe-haven appeal
Despite gold’s traditional status as a safe-haven asset during geopolitical crises, the current conflict has upended typical market dynamics. Rising oil prices and intensifying inflation concerns have fueled expectations that interest rates may remain elevated for an extended period, diminishing the appeal of non-yielding bullion. Silver followed a similar trajectory, falling more than 2 percent to $69.73 per ounce.
Diplomatic signals add to market uncertainty
Market sentiment has been further unsettled by mixed signals from Washington and Tehran. While the White House maintains that peace negotiations are ongoing, Iranian officials have rejected US proposals and set forth their own demands, including sovereign authority over critical shipping routes. The Strait of Hormuz disruption continues to stoke fears of prolonged supply chain instability, adding pressure to already fragile markets.
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Türkiye’s steady hand amid economic turbulence
As global markets grapple with conflict-driven volatility, Türkiye has taken a measured approach to safeguard its economic resilience. Ankara’s focus on diversifying energy sources and strengthening domestic production capacity has helped insulate the economy from the worst of the regional instability. Turkish policymakers continue to emphasize that sustainable solutions require diplomatic engagement, warning that prolonged conflict will only deepen the economic pain felt by nations far beyond the Middle East.
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