Gold Falls as Investors Turn to the Dollar With the War on Iran Threatening Higher Inflation

The market's knee-jerk reaction to geopolitical tensions always fascinates me. Investors flee to the dollar when war breaks out, but they're missing the bigger picture. Higher oil means higher inflation, and higher inflation historically drives gold higher over time. This temporary dollar strength is creating a gift for stackers. The COMEX is already showing stress with deliverable inventory near multi-year lows. Central banks aren't selling their gold to buy dollars during this dip. They're still net buyers month after month. War premiums on physical are already starting to show up at dealers. When the dollar rally fades and inflation reality sets in, gold will catch up fast.