Gold and silver fell sharply Today as investors across the globe moved to shed assets amid mounting fears over inflation tied to the ongoing U.S.-Iran war. Spot gold dropped roughly 5% to just above $4,600 an ounce, while front-month gold futures fell nearly 6% to $4,612. Silver had an even rougher session, with spot prices down 9.5% to $68.22 an ounce and silver futures losing 12%.
Gold futures had opened Today at $4,828 per troy ounce, already down 1.4% from Wednesday’s close of $4,896.20. By mid-morning, prices had slid well below $4,700. The one-year gain for gold, which stood at a striking 95.6% as recently as late January, had slipped to 59.1% by Thursday’s open.
What the Federal Reserve said
The Federal Reserve wrapped up its March policy meeting on Wednesday and held interest rates steady. In its updated Summary of Economic Projections, the median forecast pointed to just one rate cut in 2026, consistent with the December outlook. Fed Chair Jerome Powell acknowledged that the oil supply shock driven by the Iran war could push inflation higher while simultaneously weighing on employment and consumer spending.
Gold has no yield, so it tends to lose appeal when borrowing costs are elevated or expected to remain so. Powell’s remarks, while carefully worded, reinforced the idea that rate relief may not arrive quickly, adding pressure to gold’s price.
Iran war reshapes the global risk picture
The conflict, now entering its third week, has disrupted energy markets and closed key airspace and shipping lanes. Oil and gas prices spiked sharply earlier in the week after strikes hit energy infrastructure in Iran and Qatar. The ripple effects are spreading well beyond the Middle East.
The Bank of Japan held rates steady and noted that inflation risks had tilted upward because of the war. Switzerland’s central bank flagged the conflict as it also held rates at 0%, signaling a growing readiness to intervene in foreign exchange markets. Central banks in the U.K. and the eurozone were scheduled to update their own policies later Thursday.
Gold mining stocks and ETFs took heavy losses
The sell-off extended to mining stocks and exchange-traded funds. The ProShares Ultra Silver ETF dropped 20% before Thursday’s opening bell. The iShares Silver Trust ETF fell nearly 10%, while Aberdeen’s Physical Silver Shares ETF shed 9.9%. Among individual miners, Teck Resources fell 8.9%, and both First Majestic Silver and Coeur Mining lost roughly 10%.
In Europe, the Stoxx Europe Basic Resources index fell 6%. Fresnillo, the world’s leading silver producer, dropped 9.3%, and Antofagasta slid 8.2%.
Why gold investors are rethinking their positions
Analysts pointed to a mix of factors driving the decline. One view holds that investors are liquidating assets that had performed well, including gold, to fund purchases in markets that may have fallen too far too fast. Another factor is the strengthening U.S. dollar, which makes dollar-priced commodities more costly for buyers in other currencies and typically weighs on gold.
There is also a structural argument at play. As gold has become more widely held across mainstream investment portfolios, it has grown more sensitive to the same risk-off dynamics that move equities and bonds. Leveraged funds facing higher borrowing costs are among the most aggressive sellers.
One market observer noted that gold’s physical nature adds a layer of complexity that purely financial safe havens do not carry. With airspace and shipping routes disrupted, the logistics of actually moving and storing gold have become more complicated and expensive.
Gold’s record rally loses some of its shine
After surging 66% in 2025 and silver climbing 135% over the same period, both metals entered 2026 on shaky ground. Silver futures posted their worst single-day decline since the 1980s at the end of January. Today’s session extended those losses and raised fresh questions about whether the long rally in precious metals has entered a more turbulent chapter.
