LONDON, March 23, 2026, 07:50 (GMT)
Gold took a sharp hit Monday. Spot prices for immediate delivery dropped 5.8% to $4,226.16 an ounce by 0633 GMT—the lowest mark for 2026, and a level not seen since Dec. 11. U.S. April gold futures tracked the drop, tumbling 7.5% to $4,231.80.
This time, gold isn’t playing its usual safe-haven role. Investors are watching oil spike past $110 a barrel, inflation jitters kick up, and yields climb as the Strait of Hormuz remains effectively shut. A stronger dollar only adds to the shift.
Gold doesn’t offer interest, so when yields climb, it tends to feel the squeeze. The U.S. 10-year Treasury yield hit 4.415%—and now, futures traders are betting on the chance of a Fed hike instead of a cut by year-end. Central banks from the ECB to the Bank of England and Bank of Japan have each taken a more hawkish tone in their recent policy messaging.
Bullion’s losing streak has stretched to nine sessions. Last week’s plunge exceeded 10%—the steepest weekly drop since February 1983. Prices have now slumped over 20% from the all-time high of $5,594.82 an ounce set on Jan. 29.
Tim Waterer, chief market analyst at KCM Trade, noted that expectations have “pivoted from rate cuts to potential rate hikes” while the Iran conflict drags into its fourth week. He pointed out that gold’s liquidity is working against it as investors dump positions to cover margin calls in other areas during the broader risk-off move. Reuters
Losses hit the whole precious metals sector, with silver sinking 8.9%, platinum down 9%, and palladium off 5.2%. Investors appeared to be trimming risk throughout the complex, not just in bullion.
The dollar index edged up 0.29% as major Asian stock indexes fell, with crude prices still running high. Investors are reading that combination as a stagflation signal—rising inflation paired with softer growth—which is feeding expectations for limited rate cuts and tougher financial conditions.
The energy crunch keeps deepening. Fatih Birol, head of the International Energy Agency, called the crisis more severe than the oil shocks of the 1970s, noting the war has stripped 11 million barrels a day from world supply. The agency is in talks with governments about tapping strategic reserves again, after already pulling 400 million barrels.
The fate of gold prices still hinges on oil and what happens in the Strait of Hormuz. “Single most important solution” is how Birol described reopening the waterway. AMP’s Shane Oliver, meanwhile, flagged the risk of a drawn-out conflict pushing oil up to $150 a barrel—fuel for more heat in yields, the dollar, and gold. A swifter reopening, though, could take the edge off the inflation jolt now rattling the trade. Reuters
Bargain hunters aren’t diving in just yet. “Meaningful bargain-hunting” needs to see steadier conditions across the region, said Vasu Menon, managing director of investment strategy at OCBC. With oil, rates and the dollar still in focus, traders are holding back on bullion’s haven appeal for now.
