As tensions in the Middle East stretch into their fourth week, shockwaves are now being felt across global markets and gold is no exception. The precious metal has taken a sharp hit, tumbling to its steepest weekly fall in nearly four decades, with prices reaching $4,354 per ounce.The fall marks a swift retreat from levels of around $5,200 per ounce seen on March 13, highlighting the speed and scale of the correction. The metal had earlier surged to an all-time high of $5,595.51 before losing momentum.The sharp decline is raising concerns about gold’s traditional safe-haven status. Market participants note that despite ongoing geopolitical tensions, the yellow metal has struggled to hold its appeal, with broader financial factors taking centre stage.Gold prices fallAccording to a report by The Wall Street Journal, the recent decline may open up opportunities for long-term investors looking to enter the market at lower levels.Priyanka Sachdeva told WSJ “this correction is a golden opportunity for staggered entry by long-term buyers,” she said.The report added that a sustained move below $4,400 per ounce has brought the 200-day moving average of $4,154 per ounce into view as a potential support level before any stabilisation.Data from ICE showed spot gold trading 2.0% lower at $4,400.44 per ounce, after touching an intraday low of $4,320.08, its weakest level since early January.The downturn has also been linked to expectations of liquidity-driven selling in global markets amid the ongoing Middle East conflict. Gold proceeds with a ‘cautious tone’Ole Hansen, Saxo Bank’s Head of Commodity Strategy, told WSJ that there is speculation some economies may need to raise liquidity, which could include selling gold.“While not a confirmed driver, it adds to the more cautious tone,” he said.He further noted that gold’s inability to rally despite geopolitical tensions suggests other factors are currently dominating market behaviour.“Gold’s failure to rally despite geopolitical stress highlights the current dominance of higher real yields, a firmer dollar and position adjustment over its traditional safe-haven role,” he said.Analysts broadly indicate that while the correction has been sharp, the current price levels may still present selective buying opportunities for investors with a long-term perspective, even as short-term volatility continues.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)

The ongoing war in the Middle East has triggered an energy crisis for the world and “no country is immune” to its shockwaves, the International Energy Agency (IEA) warned on Monday. Addressing the National Press Club in Australia’s capital, Birol said the current situation has evolved into an unprecedented disruption, combining multiple shocks to oil and gas supplies.“This crisis as things stand is now two oil crises and one gas crash put all together,” he said. He also drew comparisons with the oil shocks of the 1970s and the fallout from Russia’s 2022 invasion of Ukraine.Highlighting the broader economic risks, Birol said, “The global economy is facing a major, major threat today, and I very much hope that this issue will be resolved as soon as possible.”Also read | Bigger US strike on Iran today? Trump’s ‘mild’ warning as 48-hour deadline expires todayCommenting on the fallout of the energy crisis, Fatih Birol said, “no country will be immune to the effects of this crisis if it continues to go in this direction,” adding, “so there is a need for global efforts.”The conflict has already caused extensive damage to energy infrastructure, with Birol noting that at least forty facilities across nine countries in the region have been “severely or very severely damaged”.

“At least forty… energy assets in the region are severely or very severely damaged across nine countries,” he said.The disruption was intensified by the near shutdown of the Strait of Hormuz, a key transit route for roughly one-fifth of global oil and gas shipments. The standoff has deepened as the war entered its fourth week, with Donald Trump and Tehran issuing repeated threats, including Washington’s demand for the reopening of the waterway.Follow live updates hereBirol identified the reopening of the Strait of Hormuz as the most critical step towards stabilising the situation, while also flagging rising fuel shortages in Asia as a growing concern. Oil markets reflected the strain, with US benchmark crude briefly touching the $100-per-barrel mark early on Monday. As fuel prices continue to rise, he added that there would not be any specific crude level to trigger another release.He added that the agency is currently consulting governments worldwide and remains prepared to release additional oil from emergency reserves if needed, though he clarified that no specific price level would automatically trigger such a move.Also read | Oil prices today: Brent crude steady at $112 as Trump’s ultimatum, Iran threat keep markets on edgeMeanwhile, US President Donald Trump issued an ultimatum to Iran to reopen the strategically critical Strait of Hormuz within 48 hours, warning of military consequences if it failed to comply. He said, “If Iran doesn’t fully open, without threat, the Strait of Hormuz, within 48 hours from this exact point in time, the United States of America will hit and obliterate their various power plants, starting with the biggest one first! Thank you for your attention to this matter.” In response, Tehran warned, signalling that any attack on its energy infrastructure would prompt retaliation beyond conventional military targets. The message was conveyed by Ebrahim Zolfaghari and carried by Islamic Republic of Iran Broadcasting. He said any strike on Iran’s fuel and energy sector would trigger action against a broader range of targets linked to the United States and its regional allies.Earlier this month, 32 member nations of the IEA agreed to release 400 million barrels of oil from their emergency reserves to the market, to deal with the ongoing energy supply disruption.

US President Donald Trump

As tensions spike in the Middle East, Iran’s Islamic Revolutionary Guard Corps (IRGC) took a swipe at US President Donald Trump, mocking him with his own catchphrase: “You’re fired.”The remark came from an IRGC spokesperson after Trump issued a 48-hour ultimatum demanding that Iran fully reopen the Strait of Hormuz or face US strikes on its power infrastructure.“Hey, Trump, you’re fired. You are familiar with this sentence. Thank you for your attention to this matter,” the spokesperson said, in a pointed jab that echoed Trump’s signature line from his time as host of The Apprentice. The closing line, “Thank you for your attention to this matter”, also appeared to mimic Trump’s tone on social media posts.