Gold, Silver Crash $2 Trillion in 3 Hours Amid West Asia War, Safe-Haven Status Shaken

Gold and silver, which are normally considered safe investments, are now being affected by the ongoing war in West Asia. The value of precious metals has reduced by $2 trillion just within three hours of trading on Monday. This has come at a time when oil prices have not changed, nor have US stock futures changed.

According to a research firm, whose research has been done by Adam Kobeissi, who specializes in analyzing commodity markets, the value of bonds has increased. He says, “In the bond market, the yields of US 10-year bonds went up to 4.4 percent over a few weeks. This means traders think there will be less inflation, which means there will be fewer interest rate cuts. So, if you’re earning higher interest on your Treasury bonds, why hold gold, which does not pay you any interest?”

People are withdrawing capital from metals and investing in government bonds, making gold no longer a safe investment. Furthermore, with the escalation of the Iran war, the dollar has regained its former status as the ultimate safe investment. This is a double blow for gold. After months of rapid growth, investments in gold, and especially silver, were filled with leverage, futures, options, and other instruments that only work when prices rise. A lot of strange things are happening in precious metals.

Naveen, a Bengaluru-based trader, says the data confirms that we are witnessing a historic liquidity event. This loss of $2 trillion is no mystery, but a margin call. Looking at commodity futures, the MCX iCOMDEX Base Metals Index was down 1.68 percent at 12:15 pm on Monday, indicating that tensions are not limited to bullion but have spread across the entire commodity market.

Gold futures for April 2026 fell 8.11 percent to ₹132,767 per 10 grams, while silver futures for May 2026 fell even more, by 10.72 percent, to ₹202,465 per kilogram. Copper was also down 2.76 percent, zinc was also down, and gold ETFs were losing up to nine percent. This raises the question of whether any major players are selling their holdings.

No one has yet revealed their names, but the signs are clear. Indeed, the safe-haven sentiment is crumbling in real time. If high returns, a strong dollar, and low liquidity can change the situation so rapidly for precious metals, imagine what will happen if the same pressures are exerted on credit markets and emerging markets.