Gold Witnesses Largest Decline In 17 Years Amid US-Iran Conflict
Prices Slump Up To 14.5% In March
Amid the volatility in global markets triggered by the US-Iran conflict, gold prices recorded their steepest decline in 17 years during the month of March. During this period, gold became approximately 14.5% cheaper. Prior to this, a decline of roughly 16.8% in gold prices was observed in October 2008.
Gold Prices Fall In International Markets
Currently, gold on COMEX is trading at a level of approximately $4,600 per ounce a significant drop from the figure of around $5,400 per ounce recorded at the beginning of the month. According to experts, the primary factors driving this decline included profit-booking, a surge in the Dollar Index, rising bond yields, and a rally in other commodities such as crude oil all of which exerted downward pressure on gold prices.
Shift In Gold Trading Patterns Over Four Years
Market observers note that gold trading patterns have undergone a shift over the past four years. Prior to the Ukraine war, gold prices typically moved in the opposite direction to bond yields and the US dollar; however, this correlation subsequently changed particularly during the sharp rallies witnessed in early 2025 and 2026.
Nevertheless, in the wake of the Iran conflict, gold appears to be reverting to its traditional trends. Amidst rising bond yields and a strengthening dollar, gold has once again demonstrated its traditional inverse sensitivity, resulting in a decline in its prices.
Gold’s Outlook From A Long-Term Perspective?
Despite these developments, gold remains fundamentally strong from a long-term perspective. Over the past year, its prices have surged by more than 45%, while in the last six months alone, the precious metal has climbed by approximately 18%.
