Gold Extends Losses Amid Middle East Conflict, Market Volatility

RunWithRugs · 2026-03-26T20:05:50+00:00

Spot gold dropped below $4,500 per ounce, reflecting ongoing Middle East tensions and significant market volatility. Prices declined by 1.6% to $4,426.50, marking a 15% fall since February's conflict began, with silver also decreasing. Rising oil prices and inflation concerns have diminished gold's appeal as a safe-haven asset.

RunWithRugs

2026-03-26 20:05:50

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(MENAFN) Spot gold fell below $4,500 per ounce early Thursday, extending losses as ongoing Middle East tensions continue to drive market turbulence and weigh on bullion.

Gold was trading at $4,426.50 per ounce as of 0605 GMT Thursday, down 1.6% for the day.

The decline follows a period of sharp, volatile selloffs in recent weeks. Prices have dropped roughly 15% since the conflict began on February 28 and remain well below January 2026’s record high of $5,595 per ounce. Last week, gold suffered its largest weekly decline since 1983, losing more than 10%.

Silver also fell, sliding over 2% to $69.73 per ounce.

The market swings come amid mixed statements from US and Iranian officials. The White House has affirmed that peace negotiations are ongoing, while Tehran rejected US proposals and outlined its own conditions, including asserting sovereign control over the critical shipping route.

Although gold is traditionally considered a safe-haven asset in times of geopolitical crisis, rising oil prices and growing inflation concerns have increased expectations that interest rates may remain elevated for longer, reducing bullion’s attractiveness as a non-yielding investment.

The Middle East conflict has further unsettled global financial markets by pushing energy prices higher and raising fears of supply disruptions, particularly through the Strait of Hormuz.

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