Gold Prices Fall Amid Iran War, Here's Why

JAKARTA - Global gold prices are under pressure amid rising geopolitical tensions due to the conflict in the Middle East. This situation has surprised some market players because gold has long been known as a safe-haven asset that typically strengthens during periods of uncertainty. However, in recent weeks, the movement of the precious metal’s price has shown a different trend. Quoting Reuters on Tuesday (24/3/2026), market data indicates that gold prices have experienced high volatility since the conflict erupted at the end of February 2026. In fact, during that period, the spot gold price has reportedly fallen significantly from the all-time high reached earlier in the year. The war involving Iran has had widespread impacts on global commodity markets, particularly energy. The surge in oil prices due to supply disruptions has triggered concerns over higher inflation in various countries. In such a situation, according to a report from The New York Post, the appeal of gold as a non-yielding asset has diminished. Rising interest rates typically increase yields on bonds and other financial instruments, prompting investors to shift away from gold. Additionally, the Iran conflict has strengthened the position of the US dollar in global markets. Quoting Newsweek, gold is not ignoring Iran but rather reacting to the economic consequences of the war. This reflects that the precious metal responds to the economic impacts of the war, not the conflict itself. Several analysts note that the current gold price movements are also influenced by liquidation actions by investors. When global financial markets face pressure, investors tend to sell various assets to obtain liquidity. This phenomenon has occurred in previous geopolitical conflicts, including the Russia-Ukraine war in 2022.