Gold and Silver Prices Take a Beating Amid Conflict, Investors Confused
Gold and silver prices have again softened amid pressure from a strengthening US dollar.
According to Refinitiv, gold closed at US$5,175.45 per troy ounce, gaining 0.31% on Wednesday trading (11 March 2026). This decline contrasts with a 1.06% gain on Tuesday.
On Thursday (12 March 2026) at 06:29 WIB, gold was trading at US$5,153.27 per troy ounce, down 0.43%.
Gold and silver prices have fallen on the day despite geopolitical tensions dominating global headlines.
The movement has shocked many investors because precious metals typically strengthen during geopolitical crises. However, this time the market has seen a sudden shift of funds towards the US dollar and US Treasury yields, which has depressed the entire precious metals sector.
The US dollar index surged back to 99.23 on Wednesday, up from 98.8 the previous day. Global gold purchases are converted into US dollars, so dollar strength reduces demand.
Meanwhile, US Treasury yields jumped to 4.23% on Wednesday, the highest level since 5 February 2026. Gold offers no yield, so rising Treasury returns make gold less attractive.
Despite the decline, the broader market picture remains quite complex. Gold prices have held close to record highs above US$5,200, whilst silver also remains near multi-year highs following strong gains earlier this year.
Analysts say today’s decline reflects short-term macro shocks rather than a collapse in long-term demand.
Industrial demand for silver, particularly from the solar energy and artificial intelligence infrastructure sectors, continues to grow rapidly.
Meanwhile, ongoing tension in the Middle East continues to support demand for safe-haven assets.
In short, today’s movement reflects a collision between financial macro forces and geopolitical risks. Whilst global volatility typically drives precious metals prices higher, this time strong US dollar performance, rising interest rates, and sudden margin adjustments have dominated market sentiment.
Gold prices are currently under pressure primarily due to US dollar strength and rising bond yields. Both factors make gold less attractive to investors, as precious metals provide no yield like bonds or other interest-bearing assets.