FINANCE

Gold Falls Despite War as Oil Surge, U.S. Yields Weigh

Published: Mar. 19, 2026 12:25 p.m. GMT+8

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International gold prices extended losses Wednesday, hitting a recent low as rising oil prices and higher U.S. yields eroded demand for the traditional safe-haven asset.

London spot gold has dropped more than 8% since early March, even as tensions involving the U.S., Israel and Iran escalated into direct attacks on energy infrastructure.

The sell-off accelerated Wednesday after strikes on key facilities, including Iran’s South Pars gas field, and deepened after the Federal Reserve held rates steady.

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International gold prices have dropped over 8% since early March, despite rising Middle East tensions and attacks on energy infrastructure.
The decline follows higher oil prices, steady U.S. Federal Reserve rates, rising Treasury yields, and a stronger dollar, which reduced gold's appeal.
Investors are cutting gold exposure amid increased volatility, and further price moves will depend on oil and U.S. policy.

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Who’s Who

Citic Futures: Citic Futures is a company that employs analysts, such as Zhu Shanying. Zhu Shanying, an analyst at Citic Futures, shared insights on market behavior, stating that excessive risk aversion can lead to widespread selling across various assets, including gold and silver.

GMF Research: GMF Research was founded by Cheng Tan. According to Tan, investors are reducing their gold exposure due to increased volatility, leading some multi-asset strategies to cut their positions.

AI generated, for reference only