On March 19, international gold prices plunged sharply. Spot gold dropped more than 3.6% in a single day, falling toward $4,820 per ounce, ending its recent winning streak.

The pullback was driven by two main factors: first, the Fed’s hawkish stance strengthened, pushing the U.S. dollar and Treasury yields higher and reducing gold’s appeal; second, some investors took profits amid a temporary lull in direct conflict escalation. Despite lingering uncertainty in the Middle East, higher interest rates raise the opportunity cost of holding gold, leading to rapid short‑term outflows.

Silver also slumped, falling more than 4%, putting heavy pressure on the entire precious metals sector. Gold mining stocks dropped sharply, with many companies falling more than 6%.

Over the medium to long term, geopolitical risks remain. If oil prices continue to lift inflation, gold still has investment value. However, in the short term, before the Fed’s policy shift becomes clear, gold will likely stay volatile at high levels.