Gold prices dropped below the $5,000 per ounce threshold as the Middle East conflict entered its third week. A sharp rise in international oil prices, following attacks on key energy infrastructure over the weekend, created significant downward pressure. Spot gold declined by as much as 1% during early trading, extending a two-week losing streak. Persistently rising energy prices and conflict-driven inflationary pressures have substantially weakened market expectations for interest rate cuts by the Federal Reserve and other major central banks. Specifically, after U.S. military strikes targeted Iran's primary oil export hub, Tehran swiftly launched retaliatory attacks on energy infrastructure in several Arab countries, directly triggering a surge in crude oil prices. The uncertainty surrounding the conflict's duration has made assessing its impact on markets and the broader economy exceptionally challenging. According to a senior aide to U.S. President Trump, the conflict, now in its third week, is expected to continue for another four to six weeks. However, fundamental contradictions exist between the positions of Washington and Tehran—President Trump stated that Iran "wants a deal but the U.S. demands better terms," while Tehran explicitly declared it "is not seeking negotiations or a ceasefire." This strategic maneuvering complicates market assessments of the conflict's trajectory. As the war persists, the prospect of Federal Reserve rate cuts is diminishing. Recent U.S. consumer spending data released on Friday further indicated economic softness: although the data was collected in January, before the conflict began, spending showed almost no growth that month due to weaker-than-expected economic expansion. Meanwhile, growing concerns in recent weeks that the conflict will drive up gasoline prices have pushed U.S. consumer confidence to a three-month low. Market traders widely anticipate that the probability of a rate cut at this week's Fed meeting is nearly zero. Rising borrowing costs typically exert downward pressure on non-yielding assets like gold, but current market volatility driven by geopolitical conflict is reshaping this dynamic. Although rising oil prices may suppress gold in the short term, fears of "stagflation risk"—a combination of slowing economic growth and high inflation—are prompting investors to view gold as a more attractive long-term store of value. In terms of price movements, spot gold fell 0.7% to $4,986.34 per ounce during early trading but had rebounded 0.17% to $5,027.89 by the time of reporting. Silver futures showed similar volatility, declining 0.7% earlier before rising 0.99% to $81.37.