Gold and Silver Tumble as Strong Dollar and Rate Hike Bets Bite Amid Iran Tensions

Gold and silver prices remained under pressure into the new week, with spot gold hovering around $4,500 per ounce and silver near $68 as of Friday’s close on March 29, reflecting a modest uptick but ongoing monthly declines of over 15% for gold and steeper for silver. The downturn persists despite the Iran conflict, driven by a robust dollar and rising bond yields amid persistent inflation fears from elevated oil prices.

Historic Rout Continues
March has delivered punishing losses, with MCX gold down 13% month-to-date as of March 26 and silver off 19%, marking one of the sector’s worst months in years. Gold’s peak-to-trough drop exceeds 20% from January highs above $5,600, fueled by margin hikes and forced selling.

Paradox of War Driving Prices Lower
Escalating tensions with Iran have paradoxically hurt rather than helped, as oil above $100 reignites rate-hike speculation, boosting the dollar and yields while eroding the appeal of non-yielding metals. Trump’s delay on strikes provided fleeting support, but volatility lingers.

Bullish Long-Term Forecasts Persist
Major banks stay constructive: JPMorgan eyes $6,300 by end-2026, Goldman Sachs $5,400, citing central bank demand. Analysts see dips as buying opportunities ahead of potential Fed easing later in the year. Silver’s rebound potential remains high given its volatility.