Gold prices drop over 10% amid Iran conflict
Gold just took a big hit: prices have dropped more than 10% since last month's U.S.-Israel strikes on Iran, slipping to around $5,100 per ounce.
Rising energy costs from the conflict are making gold less attractive, even though it's usually seen as a safe bet during global drama.
Silver also takes a hit
It's not just gold: other precious metals like silver are falling too, with silver down by more than 15% this week.
Higher bond yields and reduced expectations for interest-rate cuts are making non-yielding assets like gold less appealing right now.
What's happening with gold?
The Iran conflict has pushed energy prices higher and sparked inflation worries. Fed Chair Jerome Powell says he's keeping a close watch on how energy prices play out.
Plus, a stronger dollar and higher yields mean fewer people expect rate cuts soon. Some investors also cashed out after recent record highs.
Investors pulling money from gold ETFs
People have been pulling money from gold ETFs (more than 60 tons over a three-week period) as they look for safer places to park their cash amid all the uncertainty.
For now, market vibes around gold remain pretty cautious.