Gold (XAU/USD) rebounds even as Oil surges, marking the first occurrence since the US-Iran conflict – Comprehensive analysis

Crude Oil Surge Shakes Global Markets

Rapidly rising crude oil prices, fueled by ongoing uncertainty and unresolved tensions in the Middle East, have put significant pressure on global financial markets. Amid this turmoil, investors have been puzzled by gold’s lackluster performance, even though it is typically viewed as a safe haven and a shield against inflation—especially during periods of geopolitical unrest.

Ironically, metals have suffered from their previous strong gains. Since October 2024, metals enjoyed a sustained rally, but this momentum ultimately led to a sharp reversal. When commodities become the focus of intense buying, they are also vulnerable to steep declines if demand weakens. Recently, as capital shifted aggressively into crude oil and underlying fundamentals changed, metals experienced notable volatility.