31-Mar-2026 15:40

Gold witnessed a wild run in the month gone by, witnessing highly volatile movement but generally trending lower despite escalating Middle East tensions. The metal lost around 12% in March 2026 after testing a three and half month low of $4100 per ounce. While the counter edged up thereafter and moved near $4600 per ounce, sentiments remain highly volatile amid escalating Middle East tensions, with the conflict entering its fifth week and no clear resolution in sight. In March, price action showed that despite ongoing geopolitical risks, gold continues to trade under pressure and is nearly 20% below its record high of $5626 hit in January. The surge in oil prices has reignited inflation concerns, strengthening expectations that central banks will maintain a tighter policy stance for longer, thereby reducing the appeal of non-yielding assets like bullion. Adding to the downside, a firm US dollar and a slowdown in central bank buying have further weakened demand, keeping gains limited. Gold has found some support after massive losses in recent weeks. The major US indices Nasdaq and the S&P 500 dropped to their lowest closing levels in around eight months, capping downside for Gold even as the US dollar stayed supported. When Gold tested its lowest in around four-months and neared $4100 per ounce mark, it had declined around 36% from its record high.

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