New Delhi: During a war situation it has been observed that investors move toward safe investments and the prices of gold and silver rise. However, at this juncture things are going in the opposite direction. At a tome when US-Israel and Iran are engaged in a war, which has led to high crude oil prices and disruptions in fuel supplies around the world, the prices of the precious white metals have also not soared but decreased.
On MCX today, silver touched an all-time high of Rs 4,20,048 and has now dropped to approximately Rs 2,06,360. Meanwhile, gold declined from Rs 1,80,779 to around Rs 1,35,800 during the same period.
Gold & Silver’s unexpected plunge: Unpacking the decline
The decline reflects that there is a deep turmoil within the market. Now, the market is not getting driven just by news, but by interest rates, bond yields, and the strategies of large investors.
The biggest reason for the decline in Gold and Silver prices is the rapid rise in US bond yields. Especially, the yield on 10-year bonds has jumped in recent weeks. When yields rise, investors get better returns from bonds. In such cases, non-interest-bearing investments like gold become less attractive. This is why pressure on gold and silver is increasing.
Something very strange is happening in precious metals right now:
In just 3 hours, gold and silver just erased a combined -$2 TRILLION in market cap.
Meanwhile, oil prices have erased their gains on the day and US stock market futures are nearly green.
Since the Iran War… pic.twitter.com/zP43wSr9wE
— The Kobeissi Letter (@KobeissiLetter) March 23, 2026
Gold’s New Reality: Beyond Safe Haven
When pressure increases in the market, large investors are compelled to offload their most liquid assets, such as Gold and silver. To cover margin calls or losses, their selling accelerates. This further deepens the decline.
The crude oil prices are also on the higher side, due to the risks related to the Strait of Hormuz. There is a great possibility that if US-Iran war doesn’t stops soon, the oil prices could escalate further. Then there are concerns regarding inflation. Interest rates may remain high for a longer period. This is why bond yields and the dollar are strengthening, which is negative for gold.
The biggest problem is that gold is no longer acting like a safe haven investment. Instead, it is moving like the stock market. The biggest takeaway from the entire situation is that markets are no longer driven just by wars or news.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, InvITs and any form of alternative investment instruments and crypto assets.)