Gold fell sharply and was close to wiping out this year’s gains, as the war in the Middle East entered its fourth week and the US and Iran traded threats of new attacks.
Bullion plunged as much as 3.8% to near $4,320.30 an ounce — less than a dollar above where it ended last year. Since the conflict began, surging oil prices have raised inflationary risks and reduced prospects for near-term interest-rate cuts by the US Federal Reserve and other central banks. This is a headwind for non-yielding gold, which has fallen for eight consecutive sessions and just posted its biggest weekly drop since 1983.
