Gold and silver in freefall as investors flee safe haven metals trade

Group 1 - The recent sell-off in precious metals, including gold, silver, and platinum, is attributed to investors retreating from these assets as safe havens amid the ongoing war in Iran [1][3]. - Spot gold prices fell 7.8% to $4,126.36.80, while gold futures dropped almost 10% to $4,119.10, marking the lowest level in 2026 [1]. - Spot gold has lost approximately 25% since reaching a record high of $5,594.92/oz at the end of January, with a significant decline of nearly 10% last week, the worst performance since September 2011 [2]. Group 2 - Spot silver decreased by 8.3% to $62.24, nearly half of its value from $117 on February 28, when the Iran war began, with silver futures down 11.7% at $61.66 [2]. - Platinum futures plummeted 10.6% to $1,760.90, and palladium dropped 6.7% to $1,347.50, indicating a broader sell-off in precious metals [3]. - The ongoing conflict in Iran is contributing to a risk-off sentiment in markets, raising concerns over inflation and increasing energy prices, which is impacting the traditional safe haven status of gold [3]. Group 3 - The potential for higher interest rates due to the war may lead investors to favor government bonds over non-yielding precious metals [4]. - Euro zone government bond yields are rising, reflecting the escalating conflict and leaving few safe investment options for investors [4].