Reasons why gold prices did not rise but fell after the US-Iran conflict

SelfStaking · 2026-03-29T02:43:35+00:00

After the United States and Israel attacked Iran, gold prices remained weak, affected by the appreciation of the US dollar and rising interest rates. Meanwhile, financial market volatility increased, and investors sold off gold to offset losses. The New York futures gold price continued to decline, failing to become a safe-haven asset.

SelfStaking

2026-03-29 02:43:35

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After the U.S. and Israel attacked Iran, gold prices continued to weaken. Previously, gold, which was regarded as a “safe asset,” would be bought in response to rising geopolitical risks. Some analysts believe that, besides the headwinds of a rising dollar and increasing interest rates, the rapid rise in volatility in financial markets and investors selling gold to offset losses are also reasons for the price weakness.

As an international benchmark for gold, New York futures (main contract) were around $5,170 per ounce on March 11, down more than 1% from before the U.S.-Iran conflict. Although prices increased on March 2, the day after the conflict erupted, they plummeted on March 3 and have not recovered to pre-conflict levels since. The performance of gold has been similar to that of the Dow Jones Industrial Average, and it has not served as a safe haven for funds during emergencies.

When Russia invaded Ukraine in February 2022, gold rose by 4% by the eighth business day after the attack began.

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