Spot gold and silver prices plummet, exacerbating inflation concerns amid Iran war.

The price of gold has fallen for the ninth consecutive day, wiping out the gains so far this year. The escalating Middle East conflict has increased inflationary risks and pushed up expectations of interest rate hikes. Silver prices have plummeted by over 10%. The spot price of gold has dropped below $4100 per ounce. The conflict has led to a surge in energy prices, reducing the likelihood of the Federal Reserve and other central banks cutting interest rates in the short term. This is unfavorable for interest-free gold, which experienced its largest single-week decline since 1983. The gold market has been volatile, following the overall market trends, with oil prices fluctuating near their highest closing price since mid-2022, and the stock market also experiencing ups and downs. Over the three weeks since the outbreak of the war on February 28th, the decline in gold prices has partly been due to investors seeking to offset losses in other areas of their portfolios and being forced to sell off gold. At the end of last year, gold was priced at $4,319.37 per ounce. "The magnitude of the decline in gold prices is not unprecedented, but the speed of the decline far exceeds many historical periods," said Wayne Gordon, an investment adviser at UBS Wealth Management.