"The war has pushed oil prices significantly higher, with Brent Crude up around 75% this year. Because the US is a net oil exporter, that has actually strengthened the dollar, and a stronger dollar puts downward pressure on gold, which is priced in dollars."
"Historically, global geopolitical tensions and trade uncertainty have put the price of gold in a strong position. Even though there has been a more recent drop, the price of gold did, however, rise 16.3% in 2026 through to 13th March, continuing its strong performance from 2025."
"Gold should always be seen as a long-term investment strategy. The time is right if you have the funds, you are in a financially stable position, and you're looking for an investment that will store value long-term without thought towards any short-term price fluctuations."
"For now, the stronger dollar and elevated oil prices are creating some headwinds for gold, even as prices remain near record highs. How long those pressures persist will depend largely on the trajectory of the conflict and its knock-on effects on inflation and interest rate expectations."
Gold is traditionally viewed as a safe haven, but its recent decline is attributed to a stronger dollar and rising oil prices. Brent Crude has surged 75% this year, benefiting the US as a net oil exporter. This situation has led to inflation expectations and influenced interest rates, with the Bank of England maintaining rates and the US Federal Reserve signaling limited cuts. Despite recent drops, gold prices rose 16.3% in early 2026, suggesting potential for long-term investment, independent of market fluctuations.
Read at London Business News | Londonlovesbusiness.com
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