opinion

The real reason gold prices fell after the Iran attack

Kitco Media
By CPM Group
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In this presentation, Jeffrey Christian of CPM Group explains why gold prices fell after the United States and Israel attacked Iran, and why that reaction was not as contradictory as many investors assume. He discusses the major drivers behind gold’s move lower, including the Federal Reserve’s decision to keep interest rates higher for longer, profit-taking after a massive rally, and disruptions to physical bullion flows through Dubai.

Jeff also discusses the larger implications of the war for gold and silver prices over the short, medium, and long term. He explains why the immediate market response was more muted than many expected, how the eventual reopening of bullion trade routes could affect demand, and why the longer-term consequences of the conflict may remain supportive for precious metals.

The presentation ends with some data and analyses from CPM’s 2026 Gold Yearbook, released Tuesday 24 March. The data includes information on the billions of ounces of proven and probable gold mining reserves, the 41 gold mining development projects listed in the Yearbook, information on the recent increases in U.S. dollar gold holdings at central banks and central bank gold purchases.

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CPM Group

CPM Group is a commodities research, consulting, financialadvisory and commodities management firm providing independent research,analysis and advisory services related to commodities markets, corporate andproject finance, and the financial management of exposure to commodity orientedinvestments.

We started our business in 1986 predicated on the idea that commoditiesresearch and advice is best delivered by independent experts who do not work forbanks, brokers, mining companies, or any other entity that has interests thatcould conflict with the best interests of the clients receiving the research,analysis, and advice.

All of our work is driven by fundamental commodities research and economicanalysis. As we undertake our research into individual commodities markets wegather a tremendous amount of information and develop an enormous body ofextremely high quality, unbiased analysis of the markets and the companies thatare involved with individual commodities. The outputs of our research andanalysis take the form of research reports, specialized and targeted consultingrelated to these markets, financial advisory services ranging from corporate andproject finance structuring to equity introductions, and managing specificcommodities and investment positions for clients.

CPM Group continues to demonstrate the economic value and financial worth ofsuperior research, information, and analysis. Our research is based onmicro-economic analysis of the individual components of each commodity market,wedded with a top-down macro-economic analysis of the global trends affectingthese markets. We apply the results of that analysis to our research,consulting, and advisory services.

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goldJeffrey ChristianFederal ReserveU.S. dollar
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.