Gold’s performance since the Iran war broke out echoes a decline in 2022, when Russia’s invasion of Ukraine caused an energy shock that rippled through global markets. That year, bullion posted a seven-month run of losses through October, the longest such streak on record.

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Gold headed for its biggest weekly loss since 1983, as war in the Middle East boosted energy prices and reduced expectations for interest-rate cuts.

Bullion slipped as much as 2.1% as the dollar and bond yields rallied after a Wall Street Journal report that the Pentagon is sending three warships and thousands of additional Marines to the Middle East. Traders increased their bets on rate hike to 50% by October amid concern that a protracted conflict could stoke global inflation. Higher rates hurt gold as it doesn’t pay interest.

The metal — widely viewed as a haven — has dropped every week since the US and Israel attacked Iran last month. The retreat has come as Treasury yields and the US dollar gained ground, investors sold bullion to cover losses elsewhere, and gold-backed exchange-traded funds posted outflows, with global holdings erasing all their additions since the start of the year.

“Do not buy the dip — there’s way too much volatility,” said Robert Gottlieb, a former precious-metals trader at JPMorgan Chase & Co. and now an independent market commentator. Until the volatility starts to decrease and prices start to consolidate, there may be more selling, he said.

The US Federal Reserve met midweek to assess policy, opting to leaves rates unchanged as widely expected. Chair Jerome Powell emphasized that to resume easing, officials would have to see progress in reducing inflation.

Gold’s performance since the Iran war broke out echoes a decline in 2022, when Russia’s invasion of Ukraine caused an energy shock that rippled through global markets. That year, bullion posted a seven-month run of losses through October, the longest such streak on record.

Bullion-backed ETFs are set for a third week of outflows, with holdings falling more than 60 tons in that period, data compiled by Bloomberg show.

Despite the recent pullback, gold remains about 5% higher this year. Prices touched a record just below $5,600 an ounce in late January, supported by a wave of investor enthusiasm, central-bank buying, and concerns over threats to the Fed’s independence posed by President Donald Trump.

Gold initially spiked as the conflict in Iran escalated, “confirming that its geopolitical hedge function remains intact,” said Yuxuan Tang, Asia head of rates & FX strategy at JPMorgan Private Bank. If the war grinds on, “market focus would likely shift from inflation concerns to recession risks — an environment in which gold’s safe-haven properties could once again come to the fore,” she said.

Gold fell 1.7% to $4,569.23 an ounce as of 10:53 a.m. in New York, on course for a eight-day losing run, the longest since October 2023. That drop dragged the metal’s 14-day relative-strength index — a gauge of momentum — below 35, close to the level that some traders see as oversold.

In other precious metals, silver fell 5.1% to $69.09 an ounce, down by more than 14% this week. Palladium and platinum were also on track for weekly losses. The Bloomberg Dollar Spot Index rose 0.5%.