Key Takeaways
- Bullion reached $4,475 per ounce Friday before retreating to the $4,408–$4,417 range
- President Trump pushed back his Iran energy facility strike deadline to April 6, citing productive discussions
- Tehran has publicly rejected claims that any diplomatic discussions with Washington are underway
- Precious metal prices have declined over 15% since the Iran-Israel conflict erupted approximately one month ago
- Turkey’s monetary authority liquidated and exchanged roughly 60 tons of bullion valued at more than $8 billion within a two-week period
Bullion experienced a sharp uptick during Asian market hours Friday, surging approximately 2% before surrendering a portion of those advances as the session progressed. Spot prices were trading higher by roughly 0.9% at $4,417 per ounce during mid-morning hours in London. Futures contracts similarly advanced, climbing about 0.8% to reach $4,442.
Despite Friday’s positive movement, the precious metal remained positioned for a weekly decline of approximately 1.7%.
The fluctuations followed President Donald Trump’s decision to extend his ultimatum directed at Iran regarding the reopening of the Strait of Hormuz. Trump had initially warned of strikes targeting Iranian energy infrastructure if the critical waterway remained blocked. He subsequently moved the deadline to Friday, then on Thursday announced a further extension to April 6.
Trump sets a new Iran deadline: April 6 pic.twitter.com/SOVLyGGZ5j
— Annmarie Hordern (@annmarie) March 26, 2026
The president announced via Truth Social that the extension followed a request from Iran. He characterized the ongoing discussions between both nations as progressing “very well” and dismissed contradictory media coverage as “erroneous.”
Iranian officials have publicly refuted assertions that any negotiations with the United States are currently taking place.
Understanding Gold’s Decline Amid Conflict
Gold prices have tumbled more than 15% since hostilities between Iran and Israel commenced nearly a month ago. This represents a substantial decline for a commodity traditionally regarded as a defensive asset during times of geopolitical instability.
The primary catalyst is petroleum. The near-complete blockage of the Strait of Hormuz has driven crude prices considerably higher. Approximately one-fifth of global oil supplies transit through this strategic passage. Elevated petroleum costs amplify inflation concerns, prompting investors to anticipate central banks maintaining elevated interest rates for extended periods. Bullion, which generates no income, typically underperforms in high-interest-rate conditions.
The precious metal also reached historic peaks near its January highs, and several market observers suggest those elevated levels may have triggered widespread profit-taking.
The greenback has also strengthened. The US Dollar Index registered a modest increase Friday, hovering around 99.99. A robust dollar elevates the cost of bullion for purchasers utilizing alternative currencies, potentially dampening global demand.
Official Sector Liquidation Intensifies Pressure
Turkey’s monetary authority liquidated and exchanged approximately 60 tons of bullion across a two-week timeframe. This represents more than $8 billion in precious metal value.
Central bank accumulation had served as a primary catalyst behind the metal’s sustained rally throughout the previous two years. Liquidation activity from a significant monetary authority introduces additional downward momentum to the marketplace.
Silver remained largely unchanged Friday at $68.11 per ounce. Both platinum and palladium registered modest gains.
Iran and Israel continued exchanging missile attacks Friday. Tehran additionally launched strikes targeting multiple Gulf state territories Friday morning.
