Gold, silver, and platinum prices plummeted this week as investors moved away from precious metals amid escalating tensions in the Iran conflict. Spot gold dropped 7.8% to $4,126.36, while futures fell nearly 10% to $4,119.10, marking the lowest levels for 2026. This decline follows a significant 10% loss last week, the worst performance since September 2011, and a staggering 25% drop from January’s record high.

The retreat from gold, typically a safe haven during market turmoil, reflects a broader risk-off sentiment as concerns over inflation and rising energy prices grow. With the potential for higher interest rates stemming from the conflict, investors may be shifting their focus to government bonds, which offer yields absent in non-yielding precious metals. This shift is evident as euro zone government bond yields rise amidst the ongoing geopolitical instability.

Market professionals should note that the current sell-off in precious metals could signal a continued preference for yield-bearing assets, impacting investment strategies in the coming weeks.

Source: cnbc.com