Gold prices recorded their steepest monthly decline in 17 years in March 2026, falling to around $4,600 per ounce from $5,400 per ounce at the beginning of the month on the Comex market. This represents a decline of 14.5 percent, the largest since October 2008, when prices fell by 16.8 percent.
Market participants attributed the decline to multiple factors. Profit booking at elevated price levels led investors to secure gains accumulated over previous months, resulting in a sharp increase in selling pressure.
A strengthening US dollar index also contributed to the decline. As gold is priced in dollars, a ber dollar reduced its relative attractiveness in international markets, exerting downward pressure on prices.
Rising bond yields further impacted gold prices by shifting investor preference toward government bonds offering higher returns. The increase in yields diverted capital away from gold toward fixed-income instruments.
Higher crude oil prices also influenced the market, as gains in other commodities redirected investor capital toward assets perceived to offer higher returns.
Commodity expert Anuj Gupta stated that gold’s market behavior has undergone a shift over the past four years. Prior to the Ukraine war, gold and the dollar exhibited an inverse relationship, with gold prices rising when the dollar weakened. However, during 2025 and early 2026, both assets moved higher simultaneously.
Following the onset of the Iran conflict, gold reverted to its earlier pattern, with rising bond yields and a ber dollar coinciding with declines in gold prices. This indicates that gold is again being influenced by external macroeconomic factors and risk dynamics.
Despite the monthly decline, longer-term data indicates sustained gains. Over the past year, gold prices have risen by more than 45 percent against the dollar. Over the last six months, prices have increased by approximately 18 percent.
Experts stated that the correction may be viewed as an opportunity for fresh investment, while noting that short-term volatility remains driven by global economic and geopolitical conditions.
According to experts, a recovery in gold prices would depend on a weakening dollar index and stabilisation in bond yields. Current global economic and political conditions continue to present challenges for gold prices.
