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Gold prices, typically considered a safe-haven asset, have sharply declined since the outbreak of the Iran War, drawing market attention. Historical precedents of gold price drops during missile attacks are being re-examined, leading to investor dilemmas.

Gold Prices Plummet Following Outbreak of Iran War

Gold prices, traditionally perceived as a safe-haven asset, have ironically plummeted following the outbreak of the Iran War, capturing significant market attention. From February 28 to March 26, gold fell from $5247 per ounce to $4407, marking a 16.2% decrease. This decline is more significant than that of the KOSPI (-12.5%) or the S&P 500 Index (-5.8%) during the same period. Notably, last week saw an 11% drop in gold prices in just one week, marking the largest weekly decline in 43 years since 1983.

Background of Gold Price Decline and Investor Reactions

Historical precedents where gold prices fell when the U.S. launched missiles at Middle Eastern oil-producing nations are being re-examined, challenging the common belief that gold prices rise during wartime. This sharp decline has caused panic among individual Chinese investors, and six major banks have issued warnings about the volatility of the precious metals market. Nevertheless, some investors view the current situation as a buying opportunity, flocking to gold bar sales outlets, indicating that the belief in 'gold during crises' still persists. Some analysts attribute the decline primarily to gold's previous surge of over 180% in nearly two years, suggesting that war-related anxieties led to profit-taking.

*Source: v.daum.net (2026-03-28)*

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