World gold prices plummeted sharply in Asian trading on March 23, as Iranian war continued to escalate.
Spot gold price at 4:45 PM on March 23rd Vietnam time decreased by 266.26 USD, equivalent to a decrease of 5.95%, to 4,225.49 USD/ounce - the lowest level since the end of December 2025. This development wiped out the entire increase in gold from the beginning of 2026.
Gold's decline took place amid tensions between the US, Israel and Iran entering their fourth consecutive week. Last weekend, US President Donald Trump issued a 48-hour ultimatum demanding Iran reopen the Strait of Hormuz, otherwise it would face attacks on energy infrastructure.
In response, Tehran warned it would attack energy and water facilities in the Middle East, and threatened to completely close the Strait of Hormuz - the world's strategic oil transport route.
Usually, geopolitical tensions will boost safe-haven demand for gold. However, this time the market reacted in reverse. Investors are more focused on the risk of high inflation due to prolonged conflict, especially when energy prices tend to escalate.
This concern leads to expectations that major central banks will maintain tight monetary policy for longer. Last week, the European Central Bank and the Bank of England both signaled that interest rates could continue to rise this year. Meanwhile, the market is also gradually reducing expectations that the US Federal Reserve (Fed) will soon cut interest rates.
According to analysts, the interest rate factor is the main reason putting pressure on gold. When interest rates increase or remain at a high level, the opportunity cost of holding gold - an unprofitable asset - will be greater, causing cash flow to shift to other channels.
The market currently trades less based on geopolitical risk hedging factors, but focuses more on prolonged inflation concerns, forcing central banks to maintain a tough stance" - an analysis report by OCBC bank (Singapore) said.
Not only gold, other precious metals also simultaneously decreased in price. Silver prices lost 6.63% to 63.37 USD/ounce, while platinum fell nearly 4% to 1,850 USD/ounce.
However, some experts believe that long-term supporting factors for gold have not changed. In the context of prolonged global instability, risk hedging demand may return, helping gold prices recover in the near future.
Currently, the diễn biến of the gold market still largely depends on two main variables: the escalation of the Middle East conflict and the interest rate policies of major central banks.
Regarding domestic gold prices in the Vietnamese market, as of 4:13 PM on March 23, SJC gold bar prices traded around 160.8 - 163.8 million VND/tael (buying - selling). Bao Tin Minh Chau 9999 gold ring price traded at 161 - 164 million VND/tael (buying - selling).
