The ongoing conflict in the Middle East has sent shockwaves through global markets, leading to a historic crash in gold and silver prices. Breaking a 43-year record, gold prices have plummeted following the escalation between Iran, Israel, and the USA. On Monday, spot gold dropped by 2.5% to $4,372 per ounce, marking its biggest decline in decades.

In Kolkata, 24-carat gold is currently retailing at ₹1,38,802 per 10 grams. While gold is traditionally seen as a safe-haven investment during wars, the current scenario is different. The fear of hyperinflation and a strengthened US dollar has prompted investors to shy away from precious metals. Furthermore, Gold and Silver ETFs witnessed a massive 20% dip on Monday alone.

The geopolitical situation remains grim as the conflict enters its fourth week. US President Donald Trump has issued a 48-hour ultimatum to reopen the Strait of Hormuz, threatening to strike Iran’s energy hubs. Iran has retaliated with threats to destroy American infrastructure in the region. Experts warn that as long as the Strait remains closed and military threats continue, the volatility in gold and silver prices is unlikely to stabilize.