Gold Prices Experience Sharp Decline in March, Stabilization Expected in April

Apr 13, 2026

65 min

Apr 13, 2026 05:30

What triggered gold’s March fall, and why April looks different

## March Decline

Gold prices saw a significant drop in March, falling by 12% to $4,608 an ounce, marking the steepest decline since June 2013. This unexpected downturn occurred despite ongoing geopolitical tensions and inflation concerns, which typically support gold prices.

## Factors Behind the Fall

The decline was largely driven by a rapid unwinding of leveraged positions and liquidity stress, rather than changes in gold's long-term appeal. Global gold ETFs experienced $12 billion in outflows, with North America leading the reduction in exposure. Additionally, rising US bond yields and a stronger dollar contributed to the sell-off.

## Regional Impact

In the Middle East, disruptions such as travel constraints had a limited effect on global gold pricing. While there was a decrease in jewellery demand and small bar purchases, these were not significant enough to influence international markets.

## April Outlook

Early April data indicates some stabilization, with positive ETF flows and a struggling dollar. There is renewed buying interest from wealth managers and retail investors at current price levels. However, short-term risks remain, particularly related to liquidity conditions and potential cross-asset deleveraging if oil prices remain high.

## Conclusion

While the underlying fundamentals for gold remain strong, near-term price movements will largely depend on investor responses to ongoing liquidity pressures and geopolitical developments.

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