In the past 24 hours, the escalation of conflict in the Middle East, marked by Israel’s attack on Iran and Tehran’s immediate retaliation, has ignited a series of articles in global financial media about the explosive rise in gold prices. According to reports, gold prices have surged by 30% since 2025, coinciding with Trump’s presidency. Investment inflows into gold ETFs have peaked during this period, and international reserve holdings in gold now exceed those in euros, covering over 30% of reserves and continuing to grow. Analysts note that this dramatic return of gold as a ‘safety reserve’ for central banks and investors is unprecedented since Nixon ended the Bretton Woods agreement in 1971. The upward trend in gold prices reflects a weakening of the dollar’s value base, which was established after its fixed relationship with gold ended in 1981. Bloomberg analysts suggest that Trump’s policies, including tariffs and tax cuts, have driven investors away, causing the dollar to lose more than 10% against major currencies like the euro, pound, and Swiss franc. This decline could lead to a vicious cycle of dollar concerns, pushing foreign investors to repatriate their funds and worsening fiscal deficits. With uncertainty dominating global markets, gold has surpassed $3,400-$3,500, reflecting growing instability. Gold’s resurgence highlights the Euro’s weaknesses and underscores geopolitical tensions, suggesting an ominous shadow of potential global conflict.
Gold Prices Reflect Escalating Geopolitical Tensions and Economic Uncertainty
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