Gold Price Unexpectedly Drops 2% Approaching $4400, Iran War and Oil Crisis Impact Safe-Haven Logic

Gate News Report, March 23 — Gold prices have fallen another 2%, approaching $4,400 per ounce, the lowest level since late 2025. The sell-off over the past three weeks has nearly wiped out all gains since early 2026, severely disrupting market safe-haven sentiment.

Gold is typically seen as a safe-haven asset, but this time, the Iran conflict coupled with an oil crisis has changed the price dynamics. Rising crude oil prices have fueled global inflation, prompting central banks worldwide to hold rates steady or consider hikes. Increasing bond yields have reduced the appeal of zero-yield gold, while a stronger dollar has raised the cost for non-U.S. buyers, further dampening demand.

Lack of speculative momentum is also a key factor in the decline. Gold surged 64% in 2025 and broke above $5,000 in January this year, prompting some profit-taking and accelerating the sell-off. On Monday, prices briefly rebounded above $4,500 but failed to hold, eventually falling back below $4,400. The Relative Strength Index (RSI) dropped below 30, indicating an oversold market, with investors divided on the outlook.

The chart shows that the $4,300 level is a critical support zone. If broken, selling pressure could accelerate, and gold prices may remain under short-term pressure. Most Wall Street analysts still see potential for gold to rebound above $5,000 within the year, but global geopolitical tensions and energy price volatility are prompting reassessment of forecasts. Traders should remain alert to structural risks in the gold market and monitor the ongoing impact of the dollar and oil prices on gold.