A Different Perspective on Gold Movement: Are We Facing a Repeat of the 1979 Scenario?

• In the late 1970s, specifically in 1979, escalating tensions in Iran led to a significant spike in oil prices, which directly impacted gold, causing it to rise from $200 to $850 rapidly. At that time, it was believed that gold had entered a long-term historic bull phase.
But what happened afterward was quite the opposite.

• The Federal Reserve lost control of inflation and was forced to take very strong measures:
• Interest rates were raised to nearly 20%, and liquidity was sharply withdrawn from the markets, causing gold to plummet from $850 to around $300.

Today, in 2026, the same scenario is eerily repeating:

• Rapid escalation of geopolitical tensions (Iran)
• Continuous rise in oil prices
• Increasing pressure on supply chains
• Gradual return of inflation

Here’s an important point that many overlook:

Gold is not a safe haven all the time,
but it only benefits during periods of fear and high liquidity.
However, when central banks are forced to intervene and raise interest rates:
The entire equation changes… and gold becomes one of the most affected assets.
☄️ The likely scenario if history repeats:

Crisis → Gold rally
Central bank intervention → Monetary tightening
Liquidity withdrawal → Market pressure
Result → Sharp decline in gold

What’s happening now may just be the initial phase.
The real danger could start after the monetary reaction, not during the crisis itself.
The most important question:
Will you still hold onto gold despite all the difficulties?

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