The shift marked a sharp reversal from the weekend, when Washington and Tehran traded threats that raised the risk of widespread power outages across Iran and the Gulf, including disruptions to desalination plants that supply drinking water across the region. While gold initially surged to record highs above $5,400 following the outbreak of the war, it has since plummeted nearly 22% from its late January peak of over $5,590 per ounce, with the safe-haven failure primarily attributed to a massive unwind of what had become the market's most crowded trade. The U.S. Dollar Index--a metric that pits the greenback against a basket of six leading international currencies--has rallied nearly 300 basis points since the onset of the US-Israel strikes on Iran, marking its best performance in months.
Author: Alex Kimani
Published at: 2026-03-24 00:00:00
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