Historically considered a financial refuge, gold fell sharply last week, losing 3.5% on Friday alone to trade near $4,488 per ounce. This significant decline was TradingView’s confirmed as its worst-performing week in over four decades.
The metal has retreated more than 15% since the initial U.S. and Israeli strike on Iran on February 28. Consequently, this drop has wiped out a substantial portion of its late-January rally and cast doubt on its crisis-era status.
Escalating geopolitical instability is also disrupting global oil flows through the Strait of Hormuz. This disruption has consequently fueled fears of a prolonged energy crisis in international markets.
U.S. President Donald Trump stated he is considering “winding down” military efforts in the region. However, the United States has simultaneously deployed thousands of additional troops as airstrikes continue.
Meanwhile, traders anticipate the U.S. Federal Reserve will hold interest rates steady this year. This expectation makes yield-bearing assets like bonds more appealing than non-yielding gold.
Federal Reserve Chair Jerome Powell noted higher energy prices would push up near-term inflation. This economic pressure further complicates the investment landscape for traditional assets.
In contrast, Bitcoin has clawed back some lost ground against the precious metal this month. The cryptocurrency has risen over 11.6% to approximately $70,535 since the conflict began.
Gold has still outperformed Bitcoin on a twelve-month basis, gaining 48.5% according to data. Nevertheless, Bitcoin’s recent resilience during the crisis presents a notable divergence from gold’s traditional narrative.

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