The prices of metals both precious and industrial fell Thursday as the Iran war roiled global commodities markets.
The selloff hit copper and palladium, joining gold and silver, which have fallen since the war began. Gold is typically seen as a safe-haven asset, but surging oil prices have spurred concerns that rising inflation will keep interest rates up, weakening gold’s appeal.
One analyst attributed the price drop to central banks selling gold to shore up cash: “In times of war… dollars and guns are king, not gold.” The rapidly changing battlefield developments have also left commodity traders with blind spots.
Some are hiring security consultants with Gulf sources and using tanker fleets to track port disruptions, The Wall Street Journal reported.
