The price of gold fell 2% yesterday, reaching around 4,570 dollars per ounce, heading toward the largest weekly decline since 1983. Over the course of the week, gold lost between 9 and 10% of its value.

The escalation of Middle East tensions drastically increased energy prices and undermined hopes for an imminent reduction in interest rates, according to Trading Economics.

The pressure on gold, which traditionally serves as a safe haven during periods of high inflation, comes from rising government bond yields, a stronger dollar, and profit-taking by investors liquidating positions to offset losses in other markets.

The Federal Reserve, the European Central Bank, the Bank of England, and the Bank of Japan kept interest rates stable this week but signaled readiness for additional monetary policy tightening if inflationary pressures continue.