Energy Internal Reference | Middle East Conflict Escalation, International Gold Price Further Pressured Close to $4,800/ounce; Anshan Iron and Steel Group Illegally Increases Excess Capacity

WealthCoffee · 2026-03-21T04:33:50+00:00

Recently, the escalation of Middle Eastern conflicts has paradoxically led to a decline in international gold prices, with London spot gold prices falling more than 8% cumulatively in March. Affected by regional tensions and hawkish signals from the Federal Reserve, gold prices have broken below $4,900 per ounce, reaching lows of $4,806 per ounce.

WealthCoffee

2026-03-21 04:33:50

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Caixin.com

Middle East Conflict Escalates, International Gold Prices Hit New Lows Near $4,800/oz

Caixin.com reported on March 19 that there is a common saying: “When gunfire sounds, gold is worth ten thousand taels.” However, the outbreak of the US-Iran military conflict in late February 2026 has shown an unusual trend. Despite the ongoing and escalating conflict for over half a month, international gold prices have not risen but fallen. Since March, London spot gold prices have declined by more than 8%. A financial professional expressed confusion, asking, “When will gold regain its narrative as a safe-haven asset?”

On the evening of March 18, Beijing time, London spot gold experienced two significant drops. Around 9 p.m., influenced by attacks on major gas fields in Iran and Qatar and the sudden escalation of regional tensions, gold prices broke below the key psychological level of $4,900 per ounce. Subsequently, the Federal Reserve announced its latest interest rate decision, as expected maintaining rates unchanged, but Chairman Powell’s cautious tone during the press conference and hawkish signals further delayed market expectations of rate cuts. Under this pressure, gold prices continued to decline into the early hours of the next day, reaching a low of $4,806 per ounce.

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