Due to the escalation of the Middle East situation, spot gold has fallen below $5090/oz, with a daily decline of 4.36%; spot silver has plummeted by 12.00%, breaking below $79/oz. #贵金原油价格飙升

This trend seems counterintuitive — geopolitical conflicts should boost safe-haven assets, yet gold and silver are experiencing significant sell-offs. Why might this be?
It is likely because the geopolitical conflict in the Middle East has driven up oil prices, which in turn has suppressed gold prices. The disruption of shipping through the Strait of Hormuz has caused oil prices to soar, leading the market to quickly reprice inflation expectations — rising oil prices will exacerbate inflation, forcing the Federal Reserve to slow down rate cuts or maintain high interest rates for a longer period. Real interest rate expectations are rising, directly suppressing the non-yielding asset gold. Additionally, gold prices had previously been rising continuously and are at historical highs. Silver, with its stronger industrial attributes and weaker liquidity, has experienced more dramatic declines under selling pressure. In the short term, the geopolitical conflict has not negated gold’s safe-haven function; rather, the market’s focus has temporarily shifted to the “inflation→interest rate” transmission logic. If the conflict continues to escalate and affects global financial stability, precious metals will still regain buying support.
Now, gold and silver can be traded on-chain, and it’s really hard to say whether the market will go long or short in the short term — just know that the market is no longer in the one-sided rise or fall it used to be. $XAUT