Gold plunged more than 8% on Monday, March 23, 2026, to $4,097.99 per ounce-the lowest level in four months. It extended losses into a ninth straight session, down 6.3% to $4,203.21 by 7:57am GMT.
The drop followed its steepest weekly loss since February 1983-over 10%-and marks a 25% retreat from its record $5,594.82 peak on January 29.
US gold futures for April delivery fell 8.1% to $4,205.10. Analyst Tim Waterer of KCM Trade attributed the sell-off to a pivot from rate-cut expectations to potential Fed hikes, triggered by escalating Iran-Gulf tensions and oil sustaining above $110/barrel.
Iran threatened strikes on Gulf energy and water infrastructure after Trump’s threat to target Iran’s electricity grid. The Strait of Hormuz remains under pressure, fueling inflation fears-and undercutting gold’s appeal as a non-yielding asset.
Market pricing now shows higher odds of a Fed rate hike than a cut by year-end, per CME FedWatch. Silver fell 6.1% to $63.66; platinum dropped 6.4% to $1,799.25-both at December lows.