Precious Metals Extend Sharp Losses as Investors Exit Safe Haven Trades

Gold Slides Further from Record High

Spot gold was down 7.8% shortly after 7:30 a.m. in London (3:30 a.m. ET) on Monday, trading at $4,126.36. Gold futures fell almost 10% to $4,119.10, marking their lowest level so far in 2026. The metal lost almost 10% last week, its weakest weekly performance since September 2011.

From its record high of $5,594.92 per ounce at the end of January, spot gold has now declined around 25%. The ongoing pullback comes despite gold’s traditional role as a key safe haven asset in periods of market stress.

Market strategists told CNBC recently that the prospect of higher interest rates as a result of the Iran war could increase the appeal of government bonds relative to non-yielding precious metals. This shift may be contributing to the rotation away from gold and other metals.

Broad-Based Weakness Across Precious Metals

Silver prices also came under significant pressure. Spot silver fell 8.3% to $62.24, a year-to-date low and almost half of the $117 level recorded on Feb. 28, when the Iran war began. Silver futures were trading 11.7% lower on Monday at $61.66.

The sell-off extended to other precious metals. Platinum futures dropped 10.6% to $1,760.90, while palladium fell 6.7% to $1,347.50. The broad retreat underscores the current risk-off sentiment in financial markets as the Iran conflict heightens concerns over inflation and rising energy prices.

At the same time, euro zone government bond yields were moving higher again in early trading on Monday, suggesting that even traditional fixed income havens were coming under pressure as the conflict’s latest escalation left investors with limited perceived safe options.

FAQ

How much has gold fallen from its recent peak?
Gold has declined around 25% from its record high of $5,594.92 per ounce reached at the end of January to about $4,126.36 for spot gold on Monday.

How are silver prices performing since the start of the Iran war?
Spot silver is trading at $62.24, almost half of its $117 level on Feb. 28, when the Iran war began, and at a year-to-date low. Silver futures are down 11.7% at $61.66.

Which other precious metals have declined and by how much?
Platinum futures are down 10.6% to $1,760.90, while palladium has fallen 6.7% to $1,347.50.

What factors are influencing the shift away from precious metals?
According to market strategists cited by CNBC, concerns that the Iran conflict could drive higher inflation and energy prices, and in turn higher interest rates, are boosting the relative appeal of government bonds at the expense of non-yielding precious metals.