Gold is expected to perform its worst this week in over forty years, with three consecutive weekly declines since the outbreak of the Iran war

Gold is likely to record its largest weekly decline since 1983, with spot gold down over 9% so far this week, set to fall for the eighth consecutive trading day, marking the longest losing streak since October 2023; COMEX gold futures have also dropped nearly 10% this week. The war in the Middle East has driven up energy prices and weakened market expectations for interest rate cuts. Since the U.S. and Israel began attacks on Iran last month, gold, widely regarded as a safe-haven asset, has faced weekly declines. As gold prices retreat, U.S. Treasury yields and the dollar strengthen, prompting investors to sell gold to offset losses in other assets, leading to outflows from gold ETFs, which have erased all gains in global holdings since the beginning of the year. Data compiled by Bloomberg shows that gold ETFs will see outflows for the third consecutive week, with holdings decreasing by over 60 tons during this period.

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