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

The market's playing defense with dollars while oil spikes, but this is backwards thinking. War premiums and energy inflation should drive gold higher, not lower. We're seeing technical selling pressure as traders chase short-term dollar strength, but the fundamentals haven't changed. Iran tensions mean supply chain disruptions and energy costs that feed through to broader inflation. Central banks aren't slowing their accumulation because of temporary dollar moves. This dip gives stackers a chance to add before the market realizes that geopolitical risk plus inflation equals higher gold prices. The dollar rally won't last when the Fed has to choose between fighting inflation or supporting markets during crisis.