Gold Successfully Trims Losses Following Trump's Unexpected Announcement
Gold, silver, and platinum once again suffered sharp declines on Monday (23/3/2026), but managed to trim their substantial early losses. The easing of the correction was due to renewed hopes for de-escalation in the Iran conflict, which lifted investor spirits.
CNBC International reported that the spot gold price had fallen more than 5% on Monday morning to US$4,262.50, before recovering and trading at $4,412 by 11:40 a.m. in London (7:40 a.m. ET).
This volatile price movement followed an announcement by US President Donald Trump that the United States would postpone strikes on Iran’s energy infrastructure after “good and productive” talks between the two countries.
Gold futures were last seen around 4% lower at US$4,392, after previously dropping nearly 10%. The yellow precious metal lost almost 10% last week in its worst performance since September 2011. The spot gold price has now lost around 25% since reaching a record high of US$5,594.92/oz at the end of January.
Meanwhile, the spot silver price fell 5.9% to US$63.76, its lowest level this year and nearly half of the US$117 level on 28 February, when the Iran war began. Although the heavy selling seen earlier that day eased somewhat, silver futures were still trading 8.3% lower on Monday at US$63.98.
The selling action spread to other precious metals, with platinum futures plunging 9.7% to US$1,780.20, while palladium dropped 4.7% to US$1,377.50.
The decline in gold prices, traditionally viewed as the primary safe-haven asset during market turmoil, aligns with the ongoing risk-off sentiment in the markets, as the Iran conflict raises concerns over inflation and rising energy prices.
Market strategists recently told CNBC that the prospects of higher interest rates resulting from the war could boost government bonds among investors, at the expense of non-yielding precious metals.
However, eurozone government bond yields rose again in early Monday trading, as the latest escalation in the conflict left investors with few hedging assets.
Previously, US President Donald Trump had issued an ultimatum to Iran calling for the reopening of the Strait of Hormuz, and Iran threatened buyers of US Treasury bonds. Nic Puckrin, co-founder of Coin Bureau, said this could end last year’s long-term gold rally.
“The bets in the Iran war have just ramped up, and what we’re seeing is a final flight to safety. This is exactly how crowded momentum trades end,” Puckrin said.
“What we’re seeing in precious metals signals that central banks and Gulf countries are utilising the gold reserves they have built up over the past few years. The focus has shifted from accumulation to capital preservation. This will naturally cap gold prices.”