'Cash is King' as investors log out of gold, silver, equities; US-Israel-Iran conflict hits Hormuz
Silver futures dropped for the 9th session in a row to hit a three-month low today. Gold slipped the entire past week, falling 26 percent from its peak of $5598 per ounce.
- Mar 23, 2026,
- Updated Mar 23, 2026 4:43 PM IST
Massive selling in precious metals saw gold and silver plunge more than 7 percent each to multi-month lows today as frightened investors pressed fresh sales in riskier assets and sought the safety of a fattened bank account amid rising turmoil in West Asia.
"Investors are liquidating everything – bullion and commodities as no one knows how this conflict will head towards resolution. Will it be worse, or better, I don’t know but cash is king,” Kunal Shah, head of commodities research at Nirmal Bang Securities said in an interview.
Meanwhile, the West Asian war entered its 24th day, destroying energy supply chains and pushing crude oil to a 44-month high. India, which imports 85% of its energy needs, has seen prices of its crude oil basket double to more than $155/barrel in a span of less than a month. A $10 surge in oil raises New Delhi’s oil import bill by at least $12 billion. Oil is India’s biggest import item.
Coming back to precious metals, silver futures fell for the 9th session in a row to hit a three-month low today. Silver has tanked 52% from its all-time high of Rs 4.2 lakh a kilo hit on January 29. Gold, too, slipped the entire past week, falling 26 percent from its peak of $5598 per ounce.
Shah said a part of the selling in riskier assets, particularly precious metals was because US and Japanese bond yields spiked sharply on fears of rising inflation due to strengthening oil prices.
"Bond markets are staging rallies. There are fears of interest rate hikes and a possible credit crisis in Western economies," Shah added.
US 10-yr bond yield hit 4.42 percent today, surging to its best since July 2025 and the 30-yr paper spiked to near 5 percent, its best since September 2025 as bond markets factored in rising energy costs in earnings forecasts and GDP numbers.
The possibility of an extended war in West Asia and fears that energy and water infrastructure could take a hit on both sides is fueling fears across investors, corporate leaders and heads of states.
Prime Minister Narendra Modi chaired the Cabinet Committee on Security today, taking stock of war level efforts to source crude oil, natural gas and fertiliser to keep India’s economy humming. The Navy is escorting LPG and crude oil tankers from international waters safely to Indian shores.
Meanwhile, the Strait of Hormuz, the focal point of war between Iran and the US & Israel, remains partially blocked. Unconfirmed media reports say Iran is charging $2 million per ship as a safe passage fee amid escalating tensions across the slim waterway.
For now, gold and silver could slip further, Shah says, hoping to see a price of Rs 1.85-1.9 lakh per kilo for silver and Rs 1.3 lakh/tola for gold in the near term.
"Buying will emerge again. Fundamentals of gold and silver are intact. It’s the sentiment that has hurt price as of now,” added Shah.
Massive selling in precious metals saw gold and silver plunge more than 7 percent each to multi-month lows today as frightened investors pressed fresh sales in riskier assets and sought the safety of a fattened bank account amid rising turmoil in West Asia.
"Investors are liquidating everything – bullion and commodities as no one knows how this conflict will head towards resolution. Will it be worse, or better, I don’t know but cash is king,” Kunal Shah, head of commodities research at Nirmal Bang Securities said in an interview.
Meanwhile, the West Asian war entered its 24th day, destroying energy supply chains and pushing crude oil to a 44-month high. India, which imports 85% of its energy needs, has seen prices of its crude oil basket double to more than $155/barrel in a span of less than a month. A $10 surge in oil raises New Delhi’s oil import bill by at least $12 billion. Oil is India’s biggest import item.
Coming back to precious metals, silver futures fell for the 9th session in a row to hit a three-month low today. Silver has tanked 52% from its all-time high of Rs 4.2 lakh a kilo hit on January 29. Gold, too, slipped the entire past week, falling 26 percent from its peak of $5598 per ounce.
Shah said a part of the selling in riskier assets, particularly precious metals was because US and Japanese bond yields spiked sharply on fears of rising inflation due to strengthening oil prices.
"Bond markets are staging rallies. There are fears of interest rate hikes and a possible credit crisis in Western economies," Shah added.
US 10-yr bond yield hit 4.42 percent today, surging to its best since July 2025 and the 30-yr paper spiked to near 5 percent, its best since September 2025 as bond markets factored in rising energy costs in earnings forecasts and GDP numbers.
The possibility of an extended war in West Asia and fears that energy and water infrastructure could take a hit on both sides is fueling fears across investors, corporate leaders and heads of states.
Prime Minister Narendra Modi chaired the Cabinet Committee on Security today, taking stock of war level efforts to source crude oil, natural gas and fertiliser to keep India’s economy humming. The Navy is escorting LPG and crude oil tankers from international waters safely to Indian shores.
Meanwhile, the Strait of Hormuz, the focal point of war between Iran and the US & Israel, remains partially blocked. Unconfirmed media reports say Iran is charging $2 million per ship as a safe passage fee amid escalating tensions across the slim waterway.
For now, gold and silver could slip further, Shah says, hoping to see a price of Rs 1.85-1.9 lakh per kilo for silver and Rs 1.3 lakh/tola for gold in the near term.
"Buying will emerge again. Fundamentals of gold and silver are intact. It’s the sentiment that has hurt price as of now,” added Shah.