Gold Prices Plunge 9.5%, Worst in 14 Years

JAKARTA – Global gold prices have faced sharp pressure amid rising geopolitical tensions stemming from the war between the United States (US) and Israel with Iran. The precious metal, long known as a safe-haven asset, has recorded its largest weekly decline in more than 14 years. According to Marketwatch on Saturday (21/3/2026), the most active Comex gold contract for April 2026 delivery closed down 0.7 per cent, or $30.80, at $4,574.90 per ounce on Friday (20/3/2026) local time. This sharp drop underscores how market shocks from the Iran conflict have triggered widespread volatility across various asset classes, including commodities traditionally seen as safe during heightened uncertainty. Head of global gold and metals strategy at State Street Investment Management, Aakash Doshi, stated that the Iran conflict indeed adds to global uncertainty, which in theory should boost gold demand. However, he noted that the precious metal has been “overpowered by broader economic forces”. Additionally, the strengthening US dollar has further hindered gold price movements. Doshi also highlighted profit-taking actions and the use of gold as a “liquidity sleeve to raise cash” or liquidity source by investors during periods of market pressure. Senior investment strategy director at US Bank Asset Management, Rob Haworth, said that the lack of forward price progress has pressured investor sentiment and technical demand for gold. This explains why the precious metal has failed to gain support, even though Middle East geopolitical conflicts typically increase interest in safe-haven assets. On the other hand, data shows that rising inflation expectations and weakening prospects for interest rate cuts have also triggered pressure on gold prices. Moreover, the strengthening US dollar during geopolitical tensions has made gold more expensive for international buyers, ultimately limiting global demand.