The Iran war, now well into its fourth week, is disrupting everything from energy prices and aviation to tourism and even assets long considered reliable safe havens for financial investment. The latest to lose some of its shine is gold.
For many investors, gold is considered the fallback plan in times of crisis. It is the commodity to turn to when markets feel shaky and the future looks uncertain. But its recent slide – the greatest in decades – is a useful reminder that even traditional safe havens can be volatile, especially when investors are also contending with inflation, interest rates and the wider economic effects of war.
For households in the Emirates, this is more than a markets story. Rising energy prices add strain to the cost of living, disruptions to the aviation industry affect holiday plans and market swings can tempt people into making rushed decisions with their money. At times like this, it can be easy to think the best move is to invest in whatever looks safest.
The lesson here is not that gold no longer has a role, but that no single asset should carry all your hopes in uncertain times. For savers and investors in the UAE, this is a moment to review budgets, strengthen emergency funds and focus on diversification rather than reaction. When headlines are alarming, the best financial decisions are usually the least impulsive ones.
Are you changing the way you invest during this conflict? Let us know about it at pf@thenationalnews.com.
With gold sinking and Bitcoin swaying, Iran war is reshaping safe-haven bets
Gold prices posted their largest weekly percentage drop in more than 14 years on Friday and are on track for their largest weekly decline since 1983, as the Iran conflict continues to cause havoc in markets.
Bullion tumbled 2.36 per cent to $4,494.10 per ounce on Friday, according to GoldPrice.org, as the Middle East war sent energy prices soaring and dashed hopes of near-term interest rate cuts.
The traditional safe-haven asset has dropped every week since the US and Israel attacked Iran on February 28. The retreat has come as the US dollar gained ground while investors sold stocks and bonds amid concerns over the ripple effect of elevated energy costs on inflation and global growth.
In case you missed it …
- Why it's not bargain-hunting time for investors as war uncertainty drags on
- Forex considerations for UAE expats: Why currency risk needs attention
- UAE property: How do you know whether it's a good time to refinance your mortgage?
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