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Gold (Bybit: XAUUSD+) and Silver (XAGUSD) plunged to their lowest levels in 6 weeks respectively, before rebounding.
At the time of writing, XAUUSD is attempting to stabilise after falling as much as 7.5% yesterday (Thur, Mar 19), when it also tested its 100-day simple moving average (SMA) for critical support for the first time since August 2025.
For further context on Gold's recent performance:
Thur, Mar 19: -3.5%
Wed, Mar 18: -3.7%
Since Feb 27th close (prior to the first US-Israeli attacks on Iran): -12%
So far in 2026: +7.6%
Also on March 19th, Gold even fell as much as 19.5% from its record intraday high ($5,598.61)posted on January 29th, 2026.
Similarly, Silver fell as much as 14.5% yesterday (Thur, Mar 19), trading below its own 100-day SMA for the first time since April 2025 - in the aftermath of President Trump's "liberation day" tariff announcement.
At the time of writing, XAGUSD has resurfaced back above the psychologically-importat $70 level, though it still trading below its 100-day SMA and still around its lowest since February 6th.
On March 19th, Silver even briefly erased all of its year-to-date gains, just like it did back on February 6th.
For further context on Silver's recent performance:
Thur, Mar 19: -3.4%
Wed, Mar 18: -4.9%
Since Feb 27th close (prior to the first US-Israeli attacks on Iran): -22.9%
So far in 2026: +0.9%
Also on March 19th, Silver even fell as much as 46% from its record intraday high ($121.618) posted on January 29th, 2026.
Gold and Silver's declines, despite the ongoing Middle East conflict, are all that more notable given that precious metals are often viewed as "safe haven" assets.
NOTE: Historically, a "safe haven" asset helps investors preserve their wealth during times of heightened fear and uncertainties.
Gold and Silver prices tend to go down at the thought of US interest rates going up, or staying elevated.
Following the Fed's most recent policy announcement on Wednesday (March 18th), markets have greatly slashed bets for Fed rate cuts in 2026:
March 19: just 22% chance of a single 25-basis point (bps) US rate cut by end-2026
March 17 (before the FOMC policy decision was announced on Thur, March 18): 100% chance of at least one 25-bps Fed rate cut by end-2026
February 20 (a month ago): 100% chance of TWO 25-bps Fed rate cuts by end-2026, with a 22% chance of a THIRD Fed rate cut this year.
Hence, the thought of US interest rates staying elevated, or not going down as fast as previously thought, has in turn pulled down Gold and Silver prices.
Historically, Gold and Silver have had an inverse relationship with the US dollar i.e. when the US dollar goes up, precious metals go down, and vice versa.
Despite its recent declines this week, the benchmark US dollar index (DXY) has strengthened about 1.7% since its closing price on Friday, February 27th - before the first US-Israeli strikes against Iran.
A stronger "greenback" makes dollar-denominated commodities more expensive for overseas buyers, which leads to weaker demand for the likes of gold and silver.
The ongoing Middle East conflict has sent oil prices soaring, which in turn has the world bracing for an inflation shock.
And precious metals have long been considered a time-tested way to "hedge" (offset the effects) against soaring consumer prices.
However, rising oil prices, which could ultimately fuel (pardon the pun) soaring inflation, has forced major central banks such as the US Federal Reserve (a.k.a. The Fed), the Bank of Japan (BoJ), Bank of England (BoE), and the European Central Bank (ECB) this week to adopt a "hawkish" stance.
That means, in the case of the:
Fed: keep US interest rates elevated/delay rate cuts.
BoJ, ECB, BoE: contemplate rate HIKES
NOTE: For most major economies, a central bank's primary tool for cooling down inflation is to raise interest rates.
In essence, the threat of rising interest rates has prompted markets to look beyond gold and silver's long-held roles as "safe haven" and "inflation hedge".
Here's the latest forecasted trading range for Gold (XAUUSD+), according to Bloomberg's model:
Over next 1 week: 71% chance gold trades between $4470.90 - $4835.80
Over the next 1 month: 73% chance gold trades between $4262.76 - $5070.00
And the latest forecasted trading range for Silver (XAGUSD), according to Bloomberg's model:
Over next 1 week: 70% chance gold trades between $66.63 - $79.10
Over next 1 month: 73% chance gold trades between $59.00 - $87.06
For those interested in precious metals, this volatility underscores the importance of monitoring, among many factors:
Fed policy
US dollar strength
and geopolitical developments
... when trading gold and silver, which have long been popular among throngs of traders and investors around the world.