Gold and silver prices crash as inflation fears shake investor confidence
Gold and silver prices have continued their sharp decline, extending a slump that began weeks ago. Both metals have lost significant value since late January, with Monday's drop pushing them further down. Investors are now facing a steep downturn in precious metal markets.
At the start of the US-Israeli military strikes against Iran three weeks ago, gold had briefly surged to nearly $5,420 per troy ounce. But since then, it has fallen by more than 18 percent, reaching just over $4,300 on Monday. The four percent drop that day marked one of the steepest single-day declines in recent weeks.
Silver has suffered even more. After hitting a record high of nearly $122 in late January, it has now lost almost half its value. On Monday alone, the price fell five percent to $64.25, bringing its total loss since the conflict began to over 30 percent.
The primary cause of the decline is rising oil prices, which have increased inflation risks. This has led to reduced expectations of interest rate cuts by the US Federal Reserve and other central banks. Higher interest rates make non-yielding assets like gold and silver less attractive to investors.
Gold has now lost nearly $1,300—or 23 percent—since its peak in January, while silver sits at less than half its record high. The ongoing conflict and economic pressures continue to weigh on precious metal markets. Analysts are watching closely to see if the downward trend persists.
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