Natural Gold Experiences Worst Weekly Price Drop Since 1983

REPUBLIKA.CO.ID, ISTANBUL – Gold prices fell further below the lowest level since December 2025 on Monday (23/3/2026), amid escalating tensions in the Middle East. This marks the first drop to below $4,200 per troy ounce. Gold prices fluctuated between $4,110 and $4,536 throughout Monday, down 7.8 per cent from Friday. Last week, gold recorded its largest weekly decline since 1983, with a drop of more than 10 per cent. In January, gold prices reached an all-time high near $5,600. Since that peak, prices have fallen around 26 per cent. Meanwhile, silver prices per ounce also dropped 8.3 per cent to $62.2. Prices are projected to remain under pressure in the short term, though some analysts remain optimistic for the long term. On Friday, gold prices erased all gains from the past two months. Gold is typically regarded as a hedge asset during economic uncertainty. According to a CNN report on Saturday local time, gold fell 11 per cent in the week, recording the largest weekly decline since 1983. Chinese analysts describe the current market as experiencing a “double blow” of liquidity shocks and expectations of tighter policies. In such sharp fluctuations, investors are advised to remain calm and cautious. Citing Global Times, the 1983 gold price drop was triggered by oil-producing countries selling gold to obtain foreign exchange amid falling oil prices, a supply-side shock. However, the current plunge is driven by Federal Reserve management of expectations, which increases the cost of holding gold and essentially suppresses demand. Analysts emphasise that the similarity between these two drops is that short-term gold price determinants are not safe-haven sentiment, but real interest rates and US dollar performance. This plunge is a correction from overcrowded trading on expectations of interest rate cuts, as well as a rational adjustment to the real interest rate environment. Data from financial data provider Wind shows that spot gold prices reached $5,598.75 per ounce on 29 January 2026. Its cumulative rise was 72.45 per cent in just over six months compared to the closing price on 30 June 2025. However, since early March this year, spot gold prices have shown a downward trend, in line with changes in the geopolitical situation, according to Shanghai-based news portal The Paper.