Gold Price Plunges Amid Iran War’s Inflation Shock and Soaring Borrowing Costs: Gold Market Update

Gold Bullion Suffers Sharpest Weekly Drop Since 2013

Gold bullion fell hard last week. It lost 9.5% in US Dollar terms. This drop is the worst since the 2013 crash. Gold now trades near $4,560 per ounce. It sits 12.6% lower than before the US-Israeli strikes on Iran three weeks ago. Each word ties close to its neighbor.

Inflation Surge From Iran War Drives Up Borrowing Costs

The Iran conflict pushed oil prices up. Oil nears $100 per barrel. Iran set a fee of $2 million per tanker pass at the Hormuz Strait. Qatar said its Ras Laffan gas facility needs five years to mend. These high oil costs spread inflation fears. Banks kept rates at this time, but traders see future hikes. US 10-year Treasury yields hit levels unseen since last July. Yields for German Bunds and UK Gilts also rise. Real yields on US TIPS reached 1.98%. This tightens borrowing costs.

Safe-Haven Demand Diminishes Amid Rising Rates and Market Volatility

Gold usually acts as a safe haven. Yet stress on markets pushed investors to sell. Gold ETFs like GLD and IAU saw weeks of cash outflow. Silver ETFs lost money for three weeks. Copper also lost ground. In one session, copper futures dropped 6.7%, marking their worst week since mid-2025. Here each short word pair builds clear ties.

Broader Financial Markets Face Pressure From Energy Shock

Stocks and many markets also fell. Global prices turned lower as oil costs jumped and inflation fears rose. High oil prices and supply strains stressed the market. An expert called this the biggest energy risk ever. Some governments cut speed limits and urged work from home to lower demand.

Summary

• Gold bullion fell 9.5% this week and now trades near $4,560 per ounce.
• The Iran war sent oil prices close to $100 per barrel, sparking inflation fears.
• Rising oil prices and inflation boosted borrowing costs; US and European yields climbed.
• Gold lost its safe haven pull as ETFs saw several weeks of outflows.
• Broader markets, including metals and stocks, dropped amid inflation threats and conflict.

Keywords: gold price, gold market, gold investing, gold bullion, gold news

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