Key Takeaways
- Gold recorded an 8%+ weekly decline, marking its sharpest drop since early 2020
- Late February U.S.-Israel military action against Iran sparked inflation concerns, pressuring precious metals
- Leading central banks including the Federal Reserve and ECB maintained current rates while cautioning against near-term cuts
- Silver experienced a steeper decline of nearly 10% weekly due to heightened dollar sensitivity
- Gold breached its $4,800–$5,200 trading corridor established since the conflict’s onset
Precious metals showed modest recovery on Friday, though gold remains positioned for its third consecutive weekly decline. The spot price advanced approximately 1.4% to reach $4,715 per ounce, while futures contracts gained roughly 2.4%.
Friday’s modest gains couldn’t offset the week’s damage, with gold declining over 8% across five trading sessions. This represents the metal’s weakest weekly showing in approximately four years.
The yellow metal had maintained a stable trading band between $5,000 and $5,200 following the U.S.-Israel military operation against Iran that commenced in late February. This week’s sharp selloff drove prices significantly beneath that established range.
BREAKING: Spot gold extends its selloff to -$400/oz on the day, now trading at $4,500/oz for the first time since February 2nd. pic.twitter.com/ARqkGaABpz
— The Kobeissi Letter (@KobeissiLetter) March 19, 2026
The ongoing military tensions have intensified worries about energy market disruptions and accelerating inflation. Crude oil prices surged toward four-year peaks this week following attacks on Middle Eastern energy facilities.
Global monetary authorities reacted to these inflationary pressures decisively. Australia’s central bank implemented a rate increase. Meanwhile, the Federal Reserve, European Central Bank, Swiss National Bank, and Bank of Japan maintained their existing policy rates.
These institutions collectively signaled that monetary easing remains distant. This messaging proved particularly damaging for gold, as the metal typically benefits from lower borrowing costs.
The Federal Reserve maintained its policy stance Wednesday while indicating inflation could accelerate further. Although gold traditionally serves as an inflation hedge, elevated rates enhance the appeal of interest-bearing alternatives.
Dollar strength created additional headwinds for gold. A rising greenback increases the metal’s cost for international buyers, potentially dampening global demand.
The dollar retreated Friday, providing temporary relief for gold prices. Multiple central banks indicated potential rate increases, strengthening their currencies relative to the dollar.
Silver Experiences Sharper Downturn
Silver suffered a nearly 10% weekly decline, exceeding gold’s losses. The white metal gained 0.5% Friday to reach $73.14 per ounce, though this provided minimal relief from the week’s steep losses.
OCBC analysts noted silver’s heightened vulnerability to dollar fluctuations and shifting risk appetite compared to gold. The bank indicated it may adjust its silver price forecasts “modestly lower.”
Silver faces additional pressure from potential economic deceleration, which could diminish industrial consumption. The metal plays crucial roles in solar energy systems and electrical applications.
Platinum declined 2.9% for the week but advanced 2.1% Friday to approximately $2,016 per ounce.
Market Expert Perspectives
Nicholas Frappell, who leads institutional markets at ABC Refinery globally, informed Reuters that gold maintained critical technical support thresholds on weekly charts.
He suggested the metal could rebound toward the $4,800 threshold where the breakdown occurred. Frappell observed that market participants had positioned themselves for selling rather than accumulation following gold’s disappointing performance during the conflict period.
Spot gold has now retreated more than 10% since the February 28 U.S.-Israel strike against Iran.
