Gold is experiencing peak volatility, with prices fluctuating in response to every bit of economic and geopolitical news. On March 23, 2026, gold dropped to a low of $4,098 but later rebounded to $4,450 after President Trump announced a temporary halt on Iranian energy strikes and claimed negotiations were underway.
Gold has fallen 5% in the last 5 days and over 12% in the last 30 days. Gold is currently trading at the same price as in the first week of January this year.
On Tuesday, gold trades around $4,325, losing steam and staying under pressure amid heightened Middle East tensions. Silver is higher by 2% to trade around $70.
Why are the sentiments down even after the end of Iran looked near on Monday? This may be due to the fact that the world has yet to come to a firm conclusion on the war’s conclusion.
Meanwhile, U.S. allies in the Persian Gulf, Saudi Arabia and the UAE, are inching toward joining the fight against Iran, reported WSJ on Tuesday. A source cited by the Times of Israel said it is “only a matter of time” before Saudi Arabia enters the war, after its foreign minister said last week that its patience for Iranian attacks “is not unlimited.”
Immediately after Trump’s announcement, Iran denied holding talks with the US to end the conflict. Tehran dismissed President Donald Trump’s announcement as an attempt to influence financial markets and launched new attacks on US targets, while Israel continued strikes against Iran.
As of today, the outcome of any talks and the potential reopening of the Strait of Hormuz remain highly uncertain.
This keeps inflation risks elevated, bolstering expectations of interest rate hikes. Gold and silver face headwinds during high-interest-rate scenarios.
With the start of the Iran war, the two precious metals were expected to shine amidst geopolitical tensions. The reverse happened, and gold and silver crashed big time.
Silver is currently priced at $70, down 45% from its all-time high of $121. Gold too has taken a hit, now trading at around $4,325 — down 23% from its peak of $5,602.
Prices are not moving up for lack of demand by the buyers. But what’s behind the selling pressure in gold and silver?
Selling Pressure in Gold and Silver
In an interview with Kitco, Gareth Soloway, chief market strategist at Verified Investing, warns that the recovery seen after Trump’s announcement of talks with Iran may be temporary.
According to Soloway, the real catalyst behind the initial rout was not just the war headlines, but a brewing crisis in the $2 trillion private credit market and a yield shock in the bond market.
The private credit market is facing redemption pressure from the investors, while the alternative asset managers have started ‘gating’ them to maintain fund stability.
Apollo Debt Solutions (ADS), a $25 billion private credit fund, announced on Monday that it was limiting redemptions to 5% of its shares after investors attempted to withdraw almost 11.2% of the total.
A few days back, Wall Street banking giant Morgan Stanley limited redemptions at one of its private credit funds after investors sought to withdraw almost 11% of shares outstanding. Meanwhile, Blue Owl Fund announced that it would stop quarterly redemptions until it can sell some assets.
Soloway warns that liquidity constraints are causing cross-asset liquidations as investors respond to margin calls by selling liquid assets like gold to cover liabilities. “All of a sudden they’re down 20 percent on their positions and that can create margin calls,” Soloway told Kitco News.
Several exchanges had increased their margin requirements, leading to a sharp sell-off in both gold and silver. Traders typically sell those assets where they are sitting on huge profits following a bull run in the earlier years.
Nigel Green of deVere Group says, “A significant part of this drop is likely being driven by leverage. Investors who built large positions using borrowed capital are now being forced to unwind as volatility spikes, and that accelerates downside momentum.”
“Margin calls are pushing traders to liquidate gold positions to raise cash. Gold had been a standout performer, so it becomes an obvious source of liquidity when markets turn more turbulent,” Green adds.
Silver is more volatile than gold, with prices rising quickly and plummeting just as quickly during a severe decline.
Soloway expresses caution regarding silver, indicating it is currently more oversold than gold, yet it is experiencing a bearish consolidation pattern referred to as a “bear flag.” Despite the $70 level holding for the third time in 2026, his technical analysis suggests a target move towards $50 to $54 per ounce before establishing a sustainable bottom.
Soloway continues to hold a bearish target of $3,500 per ounce for gold, viewing the current downturn as a necessary step toward a long-term price movement aiming for $10,000 as the “debasement trade” reemerges.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.
