Gold Falls 10% In Worst Decline Since 2011

(MENAFN- Yolo Wire) The price of gold fell 10% over the past week, its worst decline since September 2011 as investors move away from precious metals.

Gold's price is down another 4% in early trading on March 23, exacerbating the selloff that has accelerated in recent weeks. The metal is on track for its worst month since October 2008.

Currently at $4,388.80 U.S. an ounce, gold's price is down 22% from an all-time high of $5,589.38 U.S. per ounce reach on January 29 of this year.

While gold's price has been knocked lower by concerns over the U.S.-Iran war, it is also falling as investors grow increasingly worried about the health of the American economy.

Specifically, concerns are growing that higher energy prices will spark a sharp rise in inflation in America, leading the U.S. Federal Reserve to raise interest rates rather than lower them.

Higher interest rates are seen as a negative for gold, which is a non-yielding asset.

The latest decline for gold comes after the price of the yellow metal rose 66% in 2025 amid a wave of buying among central banks and investors who see it as a safe haven asset.

Silver is seeing an even more pronounced downturn, declining more than 14% in the past week and turning negative on the year.

The price of silver surged 135% last year. However, silver recently suffered its biggest one-day loss since the 1980s as investors aggressively rotate out of precious metals.

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