Gold Gains Stall Amid Geopolitical Tensions, Oil Market Volatility
Although precious metals have hovered near record levels in recent weeks, they have not seen the dramatic surges that some anticipated, even as tensions in the Middle East push oil prices sharply upward and spark renewed fears of global inflation.
When the conflict in Iran began, gold briefly climbed above $5,400 per ounce before settling back to around $5,100.
Energy markets have shown pronounced swings since the onset of the conflict. Benchmark Brent crude oil jumped temporarily to approximately $119.50 per barrel, marking its highest point since 2022, before retreating and later rising again above $100 due to supply interruptions.
Oil began the year around $60 per barrel, meaning prices have increased by more than 50% in 2026. The escalation reflects concerns that disruptions in the Strait of Hormuz, which channels about one-fifth of the world’s oil supply, could significantly tighten global energy availability.
The spike in energy costs has heightened fears of another inflationary surge, potentially complicating central banks’ plans to reduce interest rates.
Despite these pressures, gold has not shown the kind of explosive rally typically linked to major geopolitical upheavals.
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