Gold plunged — worst in 17 years
Gold experienced its steepest drop in 17 years despite the Middle East conflict — analysts point to forced liquidations, a strong dollar, and margin‑call driven selling that undercut the safe‑haven narrative. The move shows that in liquidity squeezes even traditional havens can sell off sharply. (ibtimes.co.uk)
Gold futures fell 13.54% between March 3 and March 31, putting the metal on track for its worst month in more than 17 years. (ebc.com) Spot gold was trading around $4,578.89 for spot and $4,611.30 for April futures as of March 31, 2026. (cnbc.com) Global gold-focused ETFs recorded roughly $11 billion of net outflows in the first three weeks of March, the largest monthly withdrawal since at least 2005. (markets.financialcontent.com) The SPDR Gold Shares trust (GLD) accounted for the bulk of redemptions, with more than $7 billion pulled from the fund and a single‑day $2.91 billion outflow recorded on March 4. (bloomberg.com) U.S. rate‑cut expectations were largely erased in March, pushing real yields higher, strengthening the dollar and increasing the opportunity cost of holding non‑yielding bullion. (cnbc.com) Market participants and asset managers described the move as a liquidity squeeze that forced sales of the most liquid portfolio holdings rather than a shift in long‑term fundamentals. (sprott.com) The correction follows a late‑January peak near $5,589–$5,594 per ounce, implying a drop in excess of 20% from the January high to late‑March lows. (sprott.com) The rout produced the largest weekly percentage loss since 1983 and, together with silver, erased an estimated $2 trillion of market value before a partial rebound on late‑March hopes of de‑escalation. (pictet.com)
