Gold And Silver Enter Bear Market After Sharp March Fall

Gold and silver prices have fallen more than 20% in March, their largest decline in 45 years, and have entered the bear market.

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Gold has dropped over 20% so far this month, while silver has fallen about 33%, the sharpest decline since March 1980. From their recent peaks, gold is down nearly 24% and silver about 41%. A fall of more than 20% over a short period is widely considered a bear phase in financial markets.

Sharp Decline Amid Global Market Shifts

The fall comes even as gold and silver are traditionally considered safe-haven assets. Prices have been under pressure since the escalation of the West Asia conflict involving the U.S., Israel and Iran in late February.

At the same time, global bond yields have risen across major economies. Data shows U.S. Treasury yields increased, with the two-year yield rising 18 basis points to 3.90% and the 10-year yield climbing to 4.38%. The average yield in Bloomberg’s Global Aggregate Treasuries Total Return Index stood around 3.46%, the highest since May 2024.

The increase in yields makes bonds more attractive compared to gold, which does not generate any returns in terms of interest. This creates a shift in investment patterns.

Rising Oil Prices And Inflation Concerns

The prices of crude oil have been sustained during the ongoing conflict. This has increased concerns about inflation. Higher oil prices have reduced hopes of a rate cut by central banks.

Central banks including the Bank of England and the European Central Bank have indicated that tighter monetary policy may be required, while the U.S. Federal Reserve has maintained caution on inflation, according to official statements.

Increasing inflation and higher interest rates usually reduce the demand for non-yielding assets such as gold and silver.

Selling Pressure Across Markets

Selling pressure from the global markets has also affected the prices of gold and silver. With the correction in the equity market, leveraged investors had to sell their assets to pay off debts, thereby selling gold and silver.
Market data shows that equities in several regions have declined during the same period, while the dollar index and crude oil have strengthened, indicating a shift in investor preference.

Key Levels And Market Position

Spot gold fell to around $4,097 earlier in the session, its lowest since November, while silver dropped to levels last seen in mid-December. Both metals have now erased gains made earlier in 2026.

The sharp move comes as a result of a combination of rising bond yields, a rising dollar, and a general risk-off sentiment that has pressured precious metals even as tensions between countries are high.

The decline represents a significant change in market positioning, where gold and silver are currently trading well off recent highs.