Why gold prices are plunging amid the Iran war, despite being a supposedly safe asset

The price of gold has fallen more than 10% since the outbreak of war with Iran. Gold prices have plunged 13% since the outbreak of war with Iran, betraying the yellow metal's reputation as a safe-haven asset . A slew of other assets have weathered the Middle East conflict in better shape. The S & P 500 has dropped 7% since the Middle East conflict began, while the tech-heavy Nasdaq has fallen 8%. Bitcoin has declined only 2%. "Surprise!

Scoop News DeskIran · Published Saturday, September 19, 2026 at 8:38 PM UTCUpdated Sunday, September 20, 2026 at 6:49 AM UTC

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At times, gold can "break free of longstanding patterns and trade to its own tune," Adam Turnquist, chief technical strategist at LPL Financial, said in a statement to ABC News on Tuesday. The decline in the price of gold also stems from a simultaneous rise in Treasury bond yields, which offer investors a safe asset that, unlike gold, promises annual payouts.