Why Gold Falls During War
VRIC Media Jun 4, 2026
Summary
Doomberg argues Gulf states may sell gold reserves for liquidity if conflict blocks oil revenue, explaining gold's counterintuitive weakness during Middle East tensions.
Gold prices rally when peace looks more likely because Gulf countries retain oil income and avoid forced gold sales to raise cash.
This liquidity-driven selling pressure offers a framework for understanding gold's unexpected price action during geopolitical crises.