Gold / Silver Price Forecast 2026: Iran War Shocks the Market

Precious Metals Plunge: Iran War Disrupts Safe-Haven Logic in 2026

As the U.S.-Israeli conflict with Iran escalates into its fourth week by March 22, 2026, precious metals have taken an unexpected turn. Gold, traditionally viewed as a top safe-haven during geopolitical strife, has dropped about 20% from its January peak of $5,602 per ounce to approximately $4,494 today. Silver's situation is direr, plummeting 45% from an all-time high of $121 to hover around $68–$72 per ounce in recent days. These drops have erased the gains from late 2025, leaving many retail investors with substantial paper losses.

Normally, wars increase the demand for metals like gold and silver to hedge against instability, inflation, and currency depreciation. However, Iran's turmoil—catalyzed by February 28 attacks that resulted in the death of Supreme Leader Ayatollah Ali Khamenei, leading to disruptions in the Strait of Hormuz—has prompted a harsh sell-off in metals. Oil prices have surged, fostering ongoing concerns about infl