May 4th, gold plummeted 2.53% to $4,526


The logical chain is: escalation of the US-Iran conflict → oil prices surge above $100 per barrel and the Strait of Hormuz is sealed off → inflation expectations soar → the market delays the Fed's first rate cut until the end of 2027 → the opportunity cost of holding gold skyrockets → institutions sell off safe-haven assets to raise liquidity.
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