Why Didn't Gold Rise With The War In Iran?

Multiplo Invest2.94K FollowersFollow5ShareSavePlay(5min)Comment(1)SummaryI reiterate my buy recommendation on gold, emphasizing a shift in its core investment thesis since October 2022.Gold’s performance is now driven by surplus countries’ reserve accumulation, notably China, rather than traditional risk-on/risk-off dynamics.Events like the Strait of Hormuz blockade reduce trade surpluses, limiting gold accumulation and explaining recent price weakness amid geopolitical tension.Despite changing drivers and ETF outflows, the gold thesis remains intact, and current conditions present a compelling opportunity to increase exposure. Korrawin/iStock via Getty Images Investment Thesis I reiterate the recommendation to buy gold despite its unusual performance amid the War in Iran. This article is part of a weekly series on hard assets, where I bring valuable insights on commoditiesThis article was written byMultiplo Invest2.94K FollowersFollowMore than 7 years of experience in equity analysis in LatAm. We provide our clients with in-depth research and insights to help them make informed investment decisions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.