The Globe and Mail reports in its Friday, March 20, edition that the Middle East conflict is stoking fears of rising inflation and deteriorating economic activity. The Globe's triple-bylined item, led by David Berman, reports that the S&P 500 closed at 6,606.49, down 0.3 per cent, sinking it deeper into negative territory for 2026. Energy stocks have surged alongside rising crude oil prices over the past two weeks. In contrast, materials stocks, which mainly consist of producers of base and precious metals, have fallen by more than 14 per cent in just the last five days. Typically, gold serves as a safe haven during periods of geopolitical tension. However, after experiencing a record increase earlier this year, it may now be facing challenges. "Perhaps investors in the Middle East are selling gold to buy the U.S. dollar, which has strengthened during the war, even though both are considered safe havens. Rising bond yields might also explain gold s recent meltdown," Ed Yardeni, president and chief investment strategist at Yardeni Research, said in a note. On Thursday gold fell 5.1 per cent to $4,644.80 an ounce.