Gold behaves a bit differently than most people think

Most people believe
if there's a war, gold soars
but the market isn't that straightforward
for example, think about it
if a major crisis really occurs
what's the first thing everyone does?
buy gold?
- No
- Find cash
Large funds and investors panic
they can sell everything they have
including gold
that's why, during some war or crisis moments,
gold can initially drop
what happens then?
once the market calms down
and the perception that “risk still exists” sets in,
gold makes its real rally
meaning, sometimes
gold doesn't move during the event
but during the period when the event is digested
there's another point most people miss
gold isn't actually about war
it's about interest rates and the dollar
if interest rates are high,
the cost of holding gold increases
because it doesn't generate returns for you
so even if there's a war,
if interest rates stay high,
gold can be suppressed
now, think about this simply
you have two options
one offers you 5-6% interest
the other just stays (gold)
most money flows where?
that's how simple the matter is
our situation is a bit different
In Turkey, gold = trust + escape from inflation
that's why, even when prices are falling globally,
people still line up
because they look at this:
“Will I lose more if I stay in TL?”
to put it simply,
#gold doesn't move with war
it moves according to the fear level of money
and sometimes,
this fear isn't triggered by news,
but when everyone accepts the event, and the price is set.