Why gold has fallen despite heightened global tensions

London: Despite gold s reputation as a safe haven asset, its price has plunged since the outbreak of the Middle East War, erasing almost all of its 20...

London: Despite gold's reputation as a safe haven asset, its price has plunged since the outbreak of the Middle East War, erasing almost all of its 2026 gains after reaching record highs.

AFP explains why the price of gold has fallen as global economic uncertainty rises.

Urgent need for cash

Uncertainty around the Middle East conflict has prompted investors to rapidly sell off assets to raise cash and offset losses elsewhere.

They have turned first to selling gold, “given the size of the rally seen over the course of the past year,” said Joshua Mahony, chief market analyst at Scope Markets.