Gold falls despite January 2026 record amid U.S.-Israel-Iran conflict
Gold is usually the go-to safe asset when things get tense globally, but this time, prices have actually dropped during the U.S.-Israel-Iran conflict.
Back in January 2026, gold hit a record high because people expected US rate cuts and steady inflation. But as the conflict heated up, that trend flipped.
Gold started losing its shine.
US yields outshine gold
Rising crude oil prices from the conflict pushed up inflation fears and changed what people expected from interest rates.
This made US Treasury yields more attractive than holding gold, especially with a stronger dollar in play.
Even central banks began rethinking their gold reserves: countries like Russia and Turkey sold off some of theirs to support their currencies as oil costs soared.
Nippon India ETF Gold BeES down
In India, Nippon India ETF Gold BeES fell sharply (from ₹131.60 in late February to ₹110.72 by late March) and hasn't fully bounced back yet.
So for now, even with all the chaos out there, gold isn't quite living up to its safe haven reputation.