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Gold has dropped more than 13% this month, making it the steepest decline since October 2008.
Gold Prices.
Gold went up on Tuesday but is still on track for its largest monthly fall in more than 17 years, as investors are choosing the dollar as their safe haven because of the Middle East war, which has raised worries about inflation and expectations for stricter monetary policy.
Spot gold rose 0.9% to $4,550.68 per ounce by 0727 GMT. US gold futures for April delivery went up 0.5% to $4,580.70. Gold has dropped more than 13% this month, making it the steepest decline since October 2008. However, prices are up about 5% for the quarter, after reaching a record high of $5,594.82 on January 29. Prices are down 18.70% from those record highs.
Tim Waterer, chief market analyst at KCM Trade, said, “Traders still see gold as a value investment at these levels, considering where it was trading a few months ago. So, it’s a mix of falling oil prices, a dip in the dollar, and attractive buying levels that pushed gold higher today.”
Gold is usually seen as a hedge against inflation and geopolitical risks, but the war-driven rise in energy costs is also making people expect higher interest rates and making the dollar more appealing as a safe asset. The dollar is set for its biggest monthly gain since July, making it the strongest safe asset, helped by the US being an energy exporter and investors moving to cash during the past month of conflict. Traders have almost completely ruled out any chance of a US rate cut this year, compared to about two cuts expected before the war.
Waterer said, “If the Strait of Hormuz stays closed, oil prices could stay volatile and might go up more because of supply limits. So, this high oil story, which has hurt gold prices since the conflict started, hasn’t gone away yet.”
Goldman Sachs still expects gold prices to reach $5,400 per troy ounce by the end of 2026, due to central bank diversification and Federal Reserve easing. Among other metals, spot silver rose 2.7% to $71.89 per ounce, spot platinum went up 1% to $1,917.49, and palladium increased 1.5% to $1,427. All three metals are down about 20% each so far in March.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)
March 31, 2026, 1:44 PM IST
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