Gold markets face mounting pressure as geopolitical tensions reshape investor sentiment.

Gold markets face mounting pressure as geopolitical tensions reshape investor sentiment. Spot gold fell 2.2 percent Thursday despite earlier gains, while U.S. futures climbed 7.5 percent to $4,651.50, up 50 percent annually. Trading halts for Good Friday with markets reopening Sunday. President Trump's escalating rhetoric on Iran military action triggered dollar strength and oil price surges, raising inflation expectations and potentially supporting higher interest rates. This dynamic creates a paradox for gold, which typically hedges inflation but struggles when rates rise due to its zero yield. The Turkish central bank's recent gold reserve reduction of 118 tons in two weeks signals ongoing market volatility.