Precious metals tumble 5-10% amid Middle East energy shock
Gold and silver prices fell sharply on Thursday, 19 March, as a massive wave of selling hit global markets. Spot gold sank below the $4,600 per ounce threshold—approximately €4,213—amid escalating concerns over the conflict in Iran and rising inflationary pressures.
The sell-off extended to silver, which plunged over 6% to $70.22 per ounce. Futures contracts saw even deeper losses, with silver futures dropping more than 9%. Analysts report that investors are liquidating precious metal holdings to raise cash as volatility spreads across equities and bonds.
Mining stocks and ETFs retreat
The downturn severely impacted mining companies and exchange-traded funds (ETFs). The ProShares Ultra Silver ETF lost approximately 20% in pre-market trading. Meanwhile, the iShares Silver Trust fell nearly 10%, and Aberdeen Physical Silver Shares dropped 9.9%.
In the mining sector, Teck Resources declined 8.9%, while First Majestic Silver and Coeur Mining fell by 10% and 9.9% respectively. European markets mirrored this trend, with the Stoxx Europe Basic Resources index losing 6%.
Energy shock fuels market panic
Market sentiment remains dominated by the conflict between the US and Iran, now entering its third week. Recent attacks on energy infrastructure in Iran and Qatar have triggered a global energy shock, driving oil and gas prices higher.
Central banks are maintaining a cautious stance. The U.S. Federal Reserve kept interest rates unchanged, citing "heightened uncertainty." Simultaneously, the Bank of Japan and the Swiss National Bank warned that inflationary risks are accelerating due to the regional instability.
Volatility returns after 2025 rally
After a historic 2025—where gold rose 66% and silver gained 135%—precious metals have entered a high-volatility phase in 2026. Experts suggest the current correction is driven by a stronger US dollar, which makes bullion more expensive for international buyers, and a broad "dash for cash" among institutional investors.
Translation by Iurie Tataru
