Middle East Conflict Escalates; International Gold Prices Drop Again, Approaching $4,800 per Ounce

[Caixin] It is often said, “When cannons roar, gold is worth ten thousand taels,” but the unusual situation emerged with the outbreak of the US-Iran military conflict at the end of February 2026. The conflict has lasted over half a month and continues to escalate, yet international gold prices have not risen; instead, they have fallen. Since March, London spot gold prices have declined by more than 8%. A financial professional couldn’t help but be puzzled: “When will gold regain its narrative as a safe-haven asset?”

On the evening of March 18, Beijing time, London spot gold experienced two significant drops. Around 9 p.m., influenced by attacks on major gas fields in Iran and Qatar and the sudden escalation of regional tensions, the gold price broke below the key psychological level of $4,900 per ounce. Subsequently, the Federal Reserve announced its latest interest rate decision, which was expected to keep rates unchanged, but Chairman Powell’s cautious tone at the press conference signaled a hawkish stance, further delaying market expectations of rate cuts. Under this pressure, gold prices continued to decline into the early hours of the next day, reaching a low of $4,806 per ounce.