Why Is Gold & Silver Going Down?

[mtr]

https://www.facebook.com/RobertKiyosaki ... G7hrWJsaLl

IRAN, ISRAEL & US WAR - If The Markets Are Uncertain, Why Is Gold & Silver Going Down?

That's because the war is actually helping the U.S. dollar, and that’s one of the key reasons gold and silver have been struggling.

Here's what I mean...

1. Global Fear = Money Runs Into Dollars
When geopolitical shocks hit, investors look for liquidity and safety.

The assets that usually get that money first are:
- U.S. dollars
- U.S. Treasury bonds
- Sometimes gold

Because the dollar is the world’s reserve currency and the most liquid market on earth, capital floods into it during crises.

Right now that is exactly what is happening.

The U.S. Dollar Index has been rising as the Iran conflict escalates, reflecting strong safe-haven demand.

2. Europe and Asia Are More Vulnerable to an Oil Shock
The conflict threatens the Strait of Hormuz, where about 20% of global oil moves.

Countries that depend heavily on imported oil — especially:
- Europe
- Japan
- South Korea
- India
are economically more exposed than the U.S.

So investors think:

“If energy explodes higher, those economies suffer more.”That causes money to leave their currencies and move into dollars.

3. Oil Shock = Higher U.S. Interest Rates
If oil spikes, inflation rises.

Markets are already starting to assume:
- The Fed may delay rate cuts
- Interest rates could stay higher longer
Higher interest rates make the dollar more attractive globally.

4. Why This Hurts Gold in the Short Term
Gold struggles when:
- The dollar strengthens
- Real yields rise

So you get this paradox:
War → Fear→ Stronger Dollar
Stronger dollar = Pressure on gold

That’s why metals sometimes dip at the beginning of geopolitical shocks.

5. But This Can Flip Later
Historically the sequence often looks like this:

Stage 1 – Shock
Dollar spikes
Gold flat or down

Stage 2 – Inflation shows up

Oil drives CPI higher
Real rates fall

Stage 3 – Gold explodes

This happened during:
the 1970s oil shocks
the 2008 crisis
the 2020 stimulus era

A lot of you having been asking why is Gold & Silver going down when the market is unstable - this is why.

And no this doesn't mean the dollar is getting stronger long term.

[mtr]

https://x.com/jackprandelli/status/2030598639559540917

[joe]