Apr. 29 at 2:34 AM
$GLDY GROK ?? Will Gold Recover When the War in Iran Ends?
It depends how the war ends and the broader economic fallout: Short-term de-escalation/ceasefire: Gold has already shown bounces on signals of talks, truces, or reduced tensions (rallying on ceasefire news as oil eased and inflation fears moderated). A swift resolution could lower the oil risk premium, reduce immediate inflation pressure, and allow gold to stabilize or recover some losses if the dollar softens. However, very rapid peace might also reduce "safe-haven" buying, leading to a mild pullback in gold.
Lingering effects favor support for gold:
Even after fighting stops, elevated oil prices (or volatility) could sustain higher-for-longer inflation and economic uncertainty. Gold often benefits from this as a hedge.
If the conflict leaves lasting damage to energy infrastructure or shifts global supply dynamics, it could prolong stagflation-conditions (high inflation + slower growth), are historically supportive for gold
