Gold prices plummet 7.47% as US-Iran war intensifies in late March 2026!

Jakarta, Pintu News – Global gold prices experienced a sharp decline of up to 7.47% in a short period of time, surprising markets that previously saw gold as a safe haven asset. Amidst the escalation of the conflict between the United States and Iran, this movement was contrary to investors’ expectations. This triggers a big question: is gold still relevant as a hedge, or is crypto starting to take on that role?

1. Gold Price Drops 7.47% to IDR70 Million per Ounce

In recent days, gold prices have experienced a significant correction and touched a level of around US$4,156 or equivalent to IDR70.2 million per ounce. This decline occurred in just four days, reflecting high volatility amid global geopolitical tensions.

• Gold price: US$4,156 → about Rp70.2 million
• Decline: 7.47% in 4 days
• Nominal drop: about US$335 or Rp5.6 million

This was surprising because historically, gold tends to rise when global conflicts escalate. However, this time the market showed a different response due to liquidity and monetary policy factors.

Also Read: 3 Reasons Robert Kiyosaki Believes Bitcoin Can Explode to IDR 4.22 Billion in 2026!

2. Gold is a “Liquidity Trap” for Retail Investors

The previous surge in gold prices turned out to be driven by large accumulations from institutions such as central banks and global investment firms. After prices rose significantly since 2022, retail investors started to step in at high prices, which was then followed by a sell-off from big players.

This phenomenon is known as the liquidity trap, where retail investors buy at high prices while institutions exit the market. As a result, prices experience a sharp correction and many late investors suffer losses.

3. US-Iran war puts pressure on gold prices

The conflict between the United States and Iran, including military strikes and threats to global oil routes such as the Strait of Hormuz, should have pushed gold prices up. But in reality, gold prices have fallen amid rising oil prices.

This is because the market is more focused on rising interest rates and a strengthening US dollar. Under these conditions, assets like gold become less attractive than yield-based instruments.

4. Gold Rises 250%, Then Drops 25% from Peak

Prior to this correction, gold prices had experienced a huge rally of up to 250% since the beginning of the bullish trend, pushing market capitalization up dramatically. Many institutions were buying gold at around US$2,000 (IDR33.8 million) and driving bullish sentiment in the market.

However, after reaching its peak, the price of gold experienced a correction of up to 25% from the highest level. This pattern indicates a distribution from large investors to retail investors who entered later.

5. Impact to Crypto and Cryptocurrencies

Gold’s decline opened a new discussion regarding the role of crypto as a safe haven alternative. Some investors are starting to look at Bitcoin (BTC) and Ethereum (ETH) as modern hedge assets, mainly due to their decentralized nature.

In some cases, crypto has even performed differently than gold during crises. This makes cryptocurrencies increasingly relevant in investment portfolios, despite the risk of high volatility.

6. The Role of Interest Rates and Global Liquidity

Rising global interest rates are the main factor putting pressure on gold prices. When interest rates rise, investors tend to switch to fixed-yielding assets, resulting in lower demand for gold.

In addition, tightening global liquidity has also made investors more selective in placing funds. Yieldless assets such as gold have become less attractive than bonds or other instruments.

7. What Should Investors Do?

For you as an investor, this condition is a reminder that no asset always goes up, including gold. Diversification remains an important strategy, including considering crypto as part of a portfolio.

However, it is important to understand that both gold and cryptocurrencies come with their own risks. Investment decisions should be based on fundamental analysis and market conditions, rather than simply following trends.

Also Read: Altcoin Season Index: An Important Indicator to Know the Altseason

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Gold-Based Crypto: When Physical Assets Meet Crypto Technology

As blockchain technology develops, gold can now be owned not only in physical form such as jewelry or bars, but also in digital form through gold-based crypto assets.

One of the most popular is Pax Gold (PAXG), a stablecoin backed by one troy ounce (t oz) of 400 oz London Good Delivery gold bullion, stored in Brink’s vaults.

PAXG tokens are available and traded on various crypto exchanges. PAXG is also an attractive alternative for those looking to hedge against inflation or global economic uncertainty, while remaining within the digital asset ecosystem.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Shahzaib Ahmed / Blockchain Reporter. Gold Prices Drop Amid Liquidity Shock as U.S.-Iran War Escalates. Accessed today’s date