Gold's 'Safe-Haven' Status Tested as Prices Slide From Record Highs Despite Iran War
- Spot gold has dropped below $4,000/oz, down more than 30% from its January 2026 record near $5,600/oz, per WSJ — even as U.S.-Iran tensions push oil and inflation expectations higher.
- Analysts say rate-hike expectations (driven by sticky CPI and the Iran energy shock) are the dominant force, outweighing traditional geopolitical hedging demand for bullion.
- The breakdown of gold's correlation with Middle East risk is rattling long-only bulls who bought at record highs and is reshaping tactical allocation in commodity funds.