After two weeks of violence between Israel and Iran — including a U.S. military strike on Iranian nuclear facilities and a retaliatory missile attack on a U.S. base in Qatar — a tentative ceasefire was announced, but it didn’t take long for cracks to appear.
Despite a deal brokered by President Trump, violations came swiftly.
On Tuesday, June 24, Israel bombed a radar site near Tehran, prompting a sharp rebuke from Trump, who urged Israel to “calm down” following the truce.
Iran responded with defiant messaging, posting an image of a burning American flag and declaring its intention to retaliate against any aggression. The Islamic Revolutionary Guard Corps hailed its missile strike on Al Udeid Air Base in Qatar as a success, though 14 missiles were intercepted and no casualties were reported.
Markets initially reacted with relief, but the unstable ceasefire and renewed geopolitical risks quickly reversed optimism. “The longer and broader the conflict becomes, the more challenging it could be for U.S. equities,” warned Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets. Investors are increasingly wary of how prolonged conflict and global instability might impact the stock market, interest rates, and inflation.
That sense of unease is driving more Americans toward the stability of physical gold. Traditionally seen as a hedge against inflation and a store of value during crises, gold is once again proving its value as a defensive asset. “We expect gold and silver prices to remain strong and to rise further as long as the political and economic problems continue — and we don’t see them ending anytime soon,” said Jeffrey Christian, managing partner at CPM Group. “Our expectation is that the price of gold could hit $3,500/oz within the next couple months.”
In times of geopolitical strain, investor psychology often shifts rapidly from growth to preservation. While equities and tech stocks can suffer from even minor international flare-ups, gold tends to hold or gain value as fear takes hold. This psychological safety net is what’s making it especially popular among cautious investors. Unlike speculative assets, gold doesn’t need economic optimism — it thrives on uncertainty.
What’s more, as governments respond to crises with increased spending and central banks navigate inflationary pressures, the long-term value of fiat currency becomes harder to trust. Gold, by contrast, is not reliant on political leadership or central bank policy. Its value has endured through centuries of war, regime change, and economic collapse, making it a natural hedge for anyone looking to offset exposure to riskier assets.
Stephen Juneau, senior U.S. economist at Bank of America, added that the combination of geopolitical turmoil and high energy costs could lead to a more “stagflationary” scenario, further delaying interest rate cuts and increasing the appeal of safe-haven investments.
“Continued and multiple geopolitical uncertainties will likely continue to underpin gold prices,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Gold often thrives during times of uncertainty — and with so many overlapping political and economic risks, it's no surprise that cautious investors are turning to it now. That caution is especially pronounced among retirees and older investors seeking to safeguard their wealth from market shocks. While stocks may recover over time, volatility and inflation can be devastating to those relying on fixed incomes.
Gold: The Sleep-at-Night Investment
Gold doesn’t rely on ceasefires holding or interest rates falling. It doesn’t depend on a steady stock market or low inflation. It’s a physical asset that has preserved wealth through wars, recessions, and political chaos. As global tensions rise, many Americans are turning to gold not just as an investment — but as peace of mind.
At Reagan Gold Group, we help individuals protect their savings with IRS-approved physical gold and silver IRAs and secure direct delivery options. When political instability rocks markets, gold provides the stability you can count on.
