Gold and silver continue to plummet, does the US-Iran conflict end the gold bull market?

Recently, strange phenomena have occurred in the financial markets. While crude oil prices are rising and stock markets are falling, safe-haven assets like gold and silver are also experiencing continuous sharp declines.

What is the true reason behind this round of falling gold and silver prices? Under the influence of global chaos, what are economists and strategic analysts’ attitudes toward gold and silver prices?

Contradictions and “True Logic” in the Face of a Crash

As gold prices continue to decline, Chantelle Schieven, head of research at Capitalight Research, has shared his latest views on gold.

He believes that, with the gradual increase in global debt, coupled with escalating geopolitical tensions, and against the backdrop of de-globalization and de-dollarization, precious metals like gold and silver are highly beneficial investment assets. He predicts that over the next 5-7 years, gold prices could surge to $10,000.

According to market data, as of March 16, Asian financial markets saw crude oil prices surpass $100, with Brent crude reaching as high as $106.50.

Meanwhile, silver and gold prices both plummeted sharply. International silver prices fell below $80, and spot gold prices, which have been declining, are testing the $5,000 mark.

As safe-haven assets, gold and silver should have risen during times of war and conflict, but recent sharp declines are fundamentally abnormal.

The core reason for this phenomenon is that, due to the continued decline of U.S. stocks and U.S. Treasuries, Wall Street’s cash flow is under significant pressure. They need cash to cover margin calls or reduce leverage, and thus are pushing prices higher. The more liquid markets for gold and silver become the best options for liquidity.

This has nothing to do with the intrinsic value of these metals; it’s purely the survival instinct of “cash is king” taking precedence.

However, such phenomena generally do not last long unless the U.S. stock and bond markets experience even greater declines and crises.

After the crisis passes, gold and silver prices tend to recover.

In the past, our analysis of gold prices focused on the Federal Reserve’s statements, inflation data, and the dollar index—these “meteorological” indicators.

But now, the driving forces behind gold may have shifted to geopolitical struggles and major changes in the global strategic landscape.

Simply put, the “unipolar world” that emerged after the Cold War, during the height of globalization, is now breaking apart and restructuring.

Trust between nations, the foundation of international relations, has developed deep cracks.

According to the World Gold Council, central banks worldwide have been net buyers of gold for several consecutive years.

Many central banks are increasing gold holdings as a natural choice to optimize foreign exchange reserves and hedge against uncertainties in international financial markets.

This is not short-term speculation by traders; it’s a collective “vote” by nation-states, using real gold to support a form of ultimate payment that transcends sovereign credit.

The underlying message is that confidence in the current fiat currency system—and in the ability of certain core countries to maintain their currency’s “value anchor”—is quietly eroding.

Against this backdrop, gold’s financial attributes are returning, and its fundamental monetary property—an accepted, physical, neutral “ultimate store of wealth”—is being revalued.

In summary, this Wall Street investment expert believes that the sharp decline in gold prices is an opportunity, not a trap.

For ordinary people, the significance of rising gold prices is not about annual appreciation, but about safeguarding your family’s wealth “bottom line” when rare but highly destructive “black swan” or “gray rhino” events occur.

Looking deeper, the intense volatility and long-term narrative of gold and silver are actually a mirror reflecting the core features of our era: high uncertainty, high volatility, the disintegration of old paradigms, and the emergence of new orders.

In such an environment, the greatest risk may not be the price fluctuations of a particular asset class, but the rigidity of thinking—using past experience maps to navigate the uncharted waters of the future.

Ultimately, gold itself does not speak. But its price curve is telling a story—using an ancient, silent language—about debt, trust, and the transfer of power in the modern history.