Why Gold Prices Drop as Iran War Continues to Rage

March 24, 2026 | 12:40 pm

TEMPO.CO, Jakarta - The Director of PT Traze Andalan Futures, Ibrahim Assuaibi, revealed the cause of the world gold price plunge amid the US-Israel war on Iran. Referring to Trading Economis data, the world gold price dropped to the level of US$4,361 on Tuesday, March 24, 2026, down 15.59 percent month-on-month.

Ibrahim attributed the decline in gold prices to the surging prices of Brent crude oil, which affects aviation services, and subsequently inflation rates.

"Iran is one of the Brent crude oil-producing countries for aviation fuel, which caused gold to slip and investors to switch to the safe haven of the US dollar," Ibrahim said in his statement, quoted on Tuesday, March 24, 2026.

The gold correction will resume as long as the war rages, but Ibrahim said it will remain a safe haven asset. Meanwhile, commodity price hikes have led several central banks to maintain high interest rates, with some feared to raise the benchmark rate. If this happens, the dollar index will strengthen again and the world gold price will experience another correction.

According to Ibrahim, investors are currently waiting for the potential outbreak of ground warfare in Iran. If Iran wins, the gold price will soar, but it will continue to weaken if Iran loses. 

On the other hand, Ibrahim argued that the rupiah will hold further domestic decline of precious metals. "Because the rupiah continues to weaken, there is a tendency for the price of precious metals to possibly return to stability and back to the level of Rp3 million," said Ibrahim.

Meanwhile, on Tuesday, March 24, 2026, the price of PT Aneka Tambang gold bars was recorded at the level of Rp2,843,000 per gram. The price was observed to be stable compared to the price the day before. Whereas on Monday, March 23, 2026, Antam gold price dropped by Rp50,000.

Read: Antam Gold Falls Rp50,000 to Rp2,843,000 per Gram on Monday

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