6 Impacts of the Middle East War on Gold & Silver Prices in March 2026

Jakarta, Pintu News – Global gold and silver prices came under sharp pressure after escalating conflicts in the Middle East triggered major turmoil in global financial markets. The surge in energy prices as well as the strengthening of the US dollar led investors to sell various assets, including precious metals. This condition again highlights the difference in investment characteristics between gold and digital assets such as crypto and cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Pepe Coin (PEPE).

1. Gold and Silver Prices Fall as US Dollar Strengthens

Gold and silver prices fell as the US dollar surged sharply. The US dollar index (DXY) recorded an increase of about 1.1%, which was the biggest gain since May the previous year.

A stronger dollar makes gold more expensive for investors using other currencies. As a result, demand for the precious metal tends to decrease, depressing gold prices on the global market.

Also Read: 7 Reasons On-Chain Gold is on the Rise: Trading 24/7 When the Market is Closed, XAUT-USDT is a Target

2. Silver Plunges Up to 19% from Highs

The price movement of silver experienced an even sharper decline than gold. The metal fell by 19% from its previous four-week high.

Silver prices fell below US$80 per troy ounce. If converted using an exchange rate of 1 USD = IDR 16,907, the value is equivalent to around IDR 1,352,560 per troy ounce.

3. Oil Price Spike Triggers Inflation Concerns

The geopolitical crisis in the Middle East is driving a surge in global energy prices. Brent oil prices rose to more than US$83 per barrel, an increase of about 37.1% since the beginning of the year.

This rise in energy prices triggers fears of higher inflation. In such a situation, investors tend to anticipate a possible interest rate hike which could reduce gold’s appeal.

4. Global Stock Market Corrects

Geopolitical tensions also triggered major pressure on global stock markets. A number of major world indices recorded significant declines in a single trading day.

Some of the indices that experienced a decline include:

• Japan’s Nikkei fell about 3.0%
• China’s CSI300 index falls 1.5%
• Germany’s DAX down 4.2%
• UK’s FTSE All-Share falls 3.3%
• US S&P 500 down 2.2%

This decline reflects the increasing risk-off sentiment in the global market.

5. Bonds also fell, yields rose sharply

Apart from stocks, global bond markets are also under pressure. Investors are demanding higher yields to compensate for rising inflation risks.

The yield on 10-year US government bonds has risen by about 0.13 percentage points in two days. This increase was the largest in the last nine months.

6. Investors Sell Assets to Increase Liquidity

Amidst market volatility, many investors choose to sell various assets to increase liquidity. This move often happens when the market is under great pressure simultaneously.

Some analysts call this sell-off part of a profit-taking strategy after the previous price increase. This situation also shows that gold does not always rise immediately despite geopolitical conflicts.

Conclusion

The current price movements of gold and silver are influenced by a combination of geopolitical factors, the strengthening of the US dollar, and inflationary concerns due to surging energy prices. These conditions have triggered sell-offs in various asset classes ranging from stocks to precious metals.

In recent years, investors have also started to consider diversifying into digital assets such as cryptocurrencies. Despite their high volatility compared to gold, cryptos such as Bitcoin (BTC) and Ethereum (ETH) offer growth potential that is different from traditional investment instruments.

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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. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash beforeinvesting. All activities of buying and selling Bitcoin (BTC) and other crypto asset investments are the responsibility of the reader.

Reference

• Adrian Ash/BullionVault. Dollar Jumps, Gold and Silver Crash as Iran War Hits Stocks, Bonds, Base. Accessed March 4, 2026.