Why Is Gold Plummeting? Is the "Safe-Haven Logic" Failing?

WealthCoffee

2026-03-23 06:59:29

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In March 2026, the ongoing US-Iran conflict continued to escalate, and the tense geopolitical situation should have highlighted gold’s safe-haven properties. However, international spot gold prices plummeted sharply, and the main domestic Shanghai Gold futures contract also fell significantly, nearly erasing all gains of the year. The market adage “When the cannon fires, gold rises ten thousand taels” was broken. What is the core reason behind the sharp decline in gold? Is there a misconception about “gold in turbulent times”? What will be the future trend of gold?

US-Iran Conflict Continues, Gold Prices Crash—What Are the Reasons?

Amid the ongoing escalation of the US-Iran conflict and the cooling of Federal Reserve rate cut expectations, global financial markets experienced intense volatility. Gold was not immune, with spot prices suffering a heavy blow and the safe-haven halo fading. On March 18, 2026, London gold spot prices fell by 3.86% to $4,813.53 per ounce. On March 19, they dropped again by 3.39% to $4,650.50 per ounce, with intraday lows around $4,500 per ounce. The domestic market also declined; by the close of the night session on March 19, the Shanghai Gold main contract (2604) dropped to 1,026.74 yuan per gram, a daily decline of 4.99%, nearly erasing all gains for the year.

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