With a potential US-Iran war looming, why is gold, the king of safe-haven assets, plummeting? In just a few days, spot gold has fallen below $3,900, a drop of over 30% from its year-to-date high. Why? Because the market is no longer trading on "safe haven," but rather on "interest rate hikes." Oil prices have soared to $117, and inflation expectations are completely out of control. The Federal Reserve is backed into a corner and has no choice but to adopt a hawkish stance. The 10-year US Treasury yield has surged to 4.93%. When risk-free US Treasuries offer nearly 5% interest, who would bother with gold, which offers no interest at all? The safe-haven funds brought by the war have all flowed into US Treasuries, treating gold like an ATM. Buying gold in times of chaos? That's an old scenario without high-yield US Treasuries. In today's chaotic world, funds only recognize the US dollar and high interest rates. Therefore, don't rush to buy gold at the bottom! You might be buying halfway down the mountain.