23 March 2026 Punjab Khabarnama Bureau : Gold prices have fallen sharply, dropping about 4% and wiping out most of their gains for 2026 as escalating tensions linked to the Iran conflict and rising interest-rate fears weighed heavily on investor sentiment.
The precious metal, traditionally considered a safe-haven asset during geopolitical crises, has faced intense selling pressure in recent trading sessions. Analysts say a strong U.S. dollar and rising bond yields have reduced gold’s appeal, especially as investors reassess expectations for interest-rate cuts by the Federal Reserve.
Spot gold dropped to around $4,100 per ounce during the session, marking its lowest level in several months. The decline comes after gold had reached record highs earlier in the year, when geopolitical tensions initially pushed investors toward safe-haven assets.
The ongoing conflict involving Iran has pushed oil prices sharply higher, with crude rising above $110 per barrel. Higher energy prices have increased fears of global inflation, which could force central banks to keep interest rates higher for longer.
When interest rates rise, gold typically becomes less attractive because it does not provide interest or yield. Investors often shift funds toward assets such as bonds or cash instruments that benefit from higher rates.
Market experts say the sell-off has also been driven by liquidity pressures. During periods of market volatility, investors sometimes sell gold to cover losses in other asset classes such as equities or commodities.
Meanwhile, global financial markets have become increasingly volatile. Stock indices across Asia and Europe have declined, while energy prices continue to climb amid concerns about potential disruptions to oil supplies through the Strait of Hormuz, a crucial route for global energy trade.
Despite the sharp drop, some analysts believe the long-term outlook for gold could remain positive if geopolitical tensions persist or if inflation accelerates further. Historically, gold often rebounds after initial market turbulence once investors regain confidence in its role as a hedge against uncertainty.
For now, however, the combination of a stronger dollar, rising yields, and persistent geopolitical risks continues to pressure gold prices in global markets.
Summary :
Gold prices fell about 4%, erasing 2026 gains as the Iran conflict pushed oil prices higher, strengthened the dollar, and increased fears that central banks may keep interest rates elevated.