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

SelfStaking · 2026-03-28T02:41:37+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

2026-03-28 02:41:37

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After the attacks on Iran by the United States and Israel, gold prices have continued to weaken. Previously, gold, seen as a “safe asset,” would be bought in the face of rising geopolitical risks. Some analysts believe that, in addition to the headwinds of the rising dollar and interest rates, the rapid increase in volatility in financial markets, coupled with investors selling gold to cover losses, is also one of the reasons for the price weakness.

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

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

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