Gold prices have fallen by more than 8%
23 March 11:17
Gold prices fell by more than 8% on Monday, March 23, hitting a new low for 2026, as the escalation of the conflict in the Middle East heightened fears of inflation and expectations of global interest rate hikes.
This was reported by [Komersant], citing Reuters.
The spot price of gold fell 8.16% in the morning to $4,121.63 per troy ounce, extending its decline for the ninth consecutive session. The metal fell by more than 10% last week—its worst weekly performance since February 1983—and has also retreated by more than 20% from its record high of $5,594.82 per ounce, reached on January 29.
“Given that the Iran conflict has entered its fourth week and oil prices are hovering around the $100 mark, expectations have shifted from rate cuts to possible rate hikes, which has undermined gold’s appeal in terms of yield,” said Tim Waterer of KCM.
Iran warned that it would strike at the energy and water infrastructure of Gulf countries if U.S. President Donald Trump carries out his threat to attack Iran’s power grid.
“Gold’s high liquidity, by all accounts, is working against it during this period of risk aversion. The stock market decline is leading to the closing of gold positions to cover margin calls on other assets,” said Waterer.
The closure of the Strait of Hormuz is keeping oil prices high, fueling inflation fears due to rising transportation and production costs. Although rising inflation typically boosts gold’s appeal as a hedging instrument, high interest rates are dampening demand for this non-yielding asset.
Palladium fell 4.36% to $1,342.36 per ounce, while silver dropped 8.56% to $61.96 per ounce.
The price of platinum fell by 8.58% to $1,757.24.
