Gold Price Forecast as 43-Year Drop Hits on US-Iran Oil Crisis
The post Gold Price Forecast as 43-Year Drop Hits on US-Iran Oil Crisis appeared on BitcoinEthereumNews.com.
During the week of March 16-20, gold plunged 11%, marking its largest weekly decline since 1983 and one of the sharpest drops in modern market history. Prices fell to around $4,488 per ounce, wiping out more than $2 trillion in market value in a matter of days. XAU/USD 30-Day Price Chart. Source: CoinCodex. Data from CoinCodex confirms that this selloff exceeded the sharp declines seen in late January, when gold dropped rapidly from roughly $5,320 to $4,650. While gold had previously rallied on geopolitical uncertainty, the current environment is producing a very different reaction. Since February 28, when US-Israeli strikes on Iran began, gold has fallen more than 15%. Before that, the metal was trading near $5,500, supported by its traditional role as a safe-haven asset. That narrative is now being challenged as the same geopolitical tensions that once fueled demand are now contributing to its decline. The conflict has disrupted supply flows through the Strait of Hormuz, raising concerns about a prolonged energy crisis. Rising oil prices are pushing inflation expectations higher, which in turn strengthens the case for the Federal Reserve to keep interest rates elevated. Why rising rates are hurting gold Higher interest rates reduce the appeal of gold because it does not generate yield. As bonds and other income-producing assets become more attractive, capital tends to rotate away from gold. Federal Reserve Chairman Jerome Powell has indicated that inflation may remain elevated in the short term due to energy market pressures. As a result, markets expect the Fed to keep rates steady for longer, limiting upside potential for gold. At the same time, geopolitical signals remain mixed. On March 20, President Trump suggested the possibility of scaling back military efforts, yet the US continues to deploy additional troops and carry out airstrikes in the region. This…
Filed under: News - @ March 21, 2026 1:26 pm