Gold Tops $4,570 but Heads for Worst Monthly Drop Since 2008

2026-03-31 13:03 By Joana Ferreira 1 min. read

Gold climbed above $4,570 per ounce on Tuesday, finding support at lower price levels, but remained on course for its largest monthly decline in over 17 years.

The precious metal has plunged more than 13% in March, its steepest drop since October 2008, and sits nearly 19% below record highs set in late January.

The selloff reflects a massive shift in investor sentiment, as the escalating Middle East war has fueled inflation fears and prompted a hawkish monetary policy outlook.

With Iran effectively blocking the Strait of Hormuz, the conflict has driven oil prices higher, reinforcing expectations of tighter monetary policy.

Traders have completely priced out the prospect of US rate cuts in 2026, a stark reversal from pre-war expectations of two cuts, despite Fed Chair Jerome Powell’s insistence that long-term inflation expectations remain stable.

As a result, investors have fled to the US dollar as the preferred safe haven, exerting relentless pressure on gold.



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Gold Tops $4,570 but Heads for Worst Monthly Drop Since 2008
Gold climbed above $4,570 per ounce on Tuesday, finding support at lower price levels, but remained on course for its largest monthly decline in over 17 years. The precious metal has plunged more than 13% in March, its steepest drop since October 2008, and sits nearly 19% below record highs set in late January. The selloff reflects a massive shift in investor sentiment, as the escalating Middle East war has fueled inflation fears and prompted a hawkish monetary policy outlook. With Iran effectively blocking the Strait of Hormuz, the conflict has driven oil prices higher, reinforcing expectations of tighter monetary policy. Traders have completely priced out the prospect of US rate cuts in 2026, a stark reversal from pre-war expectations of two cuts, despite Fed Chair Jerome Powell’s insistence that long-term inflation expectations remain stable. As a result, investors have fled to the US dollar as the preferred safe haven, exerting relentless pressure on gold.
2026-03-31
Gold Heads for Sharp Monthly Decline
Gold rose toward $4,600 per ounce on Tuesday as oil prices eased, but was still poised for around a 13% drop in March for its worst monthly performance since October 2008. The precious metal faced sustained pressure this month from an oil-driven inflation shock that pushed investors and policymakers toward a more hawkish stance on interest rates. The Middle East conflict has now entered its fifth week with no signs of easing, as Iran has effectively shut off the Strait of Hormuz and threatened to disrupt Red Sea shipping as well. Meanwhile, Federal Reserve Chair Jerome Powell said long-term US inflation expectations appeared to remain anchored despite heightened uncertainties tied to the conflict. He added that the central bank’s policy stance is well positioned to allow officials to assess the economic impact of the Iran war.
2026-03-30
Gold Holds Small Gains
Gold traded above $4,510 per ounce on Monday as the market balanced tentative hopes for a diplomatic resolution against the persistent inflationary risks of a prolonged energy shock. While President Trump cited serious discussions with a more reasonable regime in Iran, Bullion remains sensitive to his concurrent threat to obliterate Iranian oil and power infrastructure if a deal is not reached shortly. Despite these headlines, gold is down more than 15% from its March peak as Brent crude climbing above $115 reinforces expectations that higher energy costs will limit the Federal Reserve's room for aggressive rate cuts. Furthermore a firmer US dollar and a rebound in Treasuries have dampened the appeal of non-yielding assets even as Houthi attacks in the Red Sea sustain a high geopolitical risk premium. As investors weigh El-Erian's warnings of limited policy flexibility the metal's trajectory remains tethered to the outcome of these high-stakes negotiations.
2026-03-30