Gold’s sharp selloff is testing one of the market’s oldest assumptions. Despite an escalating Middle East conflict, bullion has fallen back toward multi-week lows, pressured by surging oil prices, a stronger US dollar and rising expectations that interest rates will stay higher for longer.
As energy absorbs the safe-haven bid and inflation fears build, investors are pulling back from precious metals — raising fresh questions about whether the rally has run its course.
Bloomberg Intelligence’s Mike McGlone speaks to MINING.COM’s Devan Murugan, arguing that gold and silver may have gone too far, and that markets are now entering a period of normalization, with volatility rising and better opportunities potentially ahead.
