CITIC Wealth Futures: Geopolitical Crisis Impact on Gold Prices Remains Uncertain, Iran Conflict Fails to Significantly Push Up Gold Prices

K-LinePoet · 2026-03-21T22:33:03+00:00

Some investors are confused by gold price fluctuations following the Iran conflict, primarily because they overlooked the high uncertainty in gold's reaction to geopolitical events. Additionally, this conflict actually strengthened market confidence in the US dollar, which had an adverse impact on gold prices. Therefore, gold price volatility is not beyond expectations.

K-LinePoet

2026-03-21 22:33:03

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Some investors still cannot understand the significant fluctuations in gold prices despite the ongoing Iran conflict. This is primarily because they overlook the high uncertainty in gold’s response to geopolitical crises. On average, the reaction is indeed positive, but individual events vary greatly. It is a mistake to view “crisis must push up gold prices” as an iron law, especially without considering the absolute position of gold prices, which can lead to metaphysical misconceptions. Secondly, the biggest benefit for gold traditionally comes from market distrust of the US dollar and the United States. However, the Iran incident has actually strengthened the dollar’s value in the short term and implied that US inflation remains uncertain, which is unfavorable for gold. The large fluctuations in gold prices are not beyond expectations. (CICC Wealth Futures)

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