Gold prices experienced a sharp selloff on March 23, 2026, dropping to around $4,125 per ounce—the lowest level since early February. The decline was triggered by a social media post from President Donald Trump announcing "very good and productive" talks with Iran and a decision to postpone planned military strikes on Iranian energy infrastructure.
The move reversed a significant portion of the safe-haven rally that had propelled gold to a record high of $5,246 earlier in the month amid escalating Middle East tensions. Spot gold fell between 0.1% and 2% intraday, ultimately settling near $4,330 after a volatile session. The selloff extended gold's losing streak to nine consecutive sessions, its worst run since 2023, and marked a 27% collapse from its January all-time high of $5,608.
Analysts attributed the plunge to a rapid shift in market sentiment from panic to relief. Trump's decision eased fears of attacks that could have drawn in China and pushed oil prices toward $200 per barrel. A stronger U.S. dollar and expectations of fewer Federal Reserve interest rate cuts in 2026 added further downward pressure on the non-yielding metal.
Other precious metals also retreated. Silver fell more than 3% from its recent record above $99.78 per ounce, while platinum dropped 5% from its peak. The de-risking narrative was reinforced by a simultaneous plunge in oil prices from $119 to $94 per barrel.
Despite the steep decline, prominent gold bull Peter Schiff remains aggressively bullish. He published a historical analysis comparing the current 27% drawdown to the 32% crash at the start of the 2008 financial crisis, which preceded a 178% surge in gold over the following three years. Applying that pattern, Schiff predicts a rebound from a low near $4,100 could propel gold to $11,400.
Schiff argues that the fiscal damage from the war—including larger government deficits and persistent inflation—has permanently worsened the economic backdrop, which is structurally positive for gold regardless of a near-term de-escalation. This contrasts with the consensus forecast from Trading Economics, which projects gold ending the quarter near $4,499 and recovering to $4,879 over the next twelve months.
