THE CURIOUS BEHAVIOUR OF GOLD DURING THE IRAN WAR.

One Response to THE CURIOUS BEHAVIOUR OF GOLD DURING THE IRAN WAR.

1. Comrade K says:

   May 2, 2026 at 8:47 pm

   May I offer my 2 cents?

   Money is universal equivalent and as such a social relation not a thing (thanks for pointing that out). Gold isn’t a universal equivalent. I can’t pay for groceries with gold. It is just another metal.

   I have heard that spot prices of oil are a lot higher than the so-called paper oil prices. Some would argue that the paper oil prices are being manipulated but I don’t think that’s the main reason. Paper oil is June’s future contract not reflecting spot prices which are $200+ per barrel. I think the perception is that by June the strait of Hormuz will be reopened by the US forces. I checked Kalshi and I see that optimism that the strait will be open by then if not sooner.  

   I suspect that gold prices rose so much due to:

   • Insiders front running. Those who knew about the launching of attacks on Iran by imperialists and Zionists bought gold and bitcoins.
   • The perception of invincibility of the US led speculators to believe that the US will make a quick victory in Iran and would then turn on to China resulting in big reduction of supply of goods exporting from China which would give rise to prices, hence inflationary. 

   And I suspect the gold price plunge was/is due to:

   • The Usrael is not winning the war with Iran. Therefore, China will continue exporting goods as usual maintaining the usual supplies. Not inflationary.
   • No new wealth is not being created in the Persian Gulf states to buy more gold. 
   • Persian Gulf states probably liquidated some of their gold holdings to pay bills.Turkey has dumped a lot of it gold holdings. Tourism is down due to the war.
   • Possible gold supply increases. Higher gold prices make unprofitable ore deposits and old unprofitable gold mines profitable. Ore deposits shrink or expand depending on the price of whatever is being mined.

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