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Gold Sheds 15% From March Peak as Fed Stays Hawkish, Dollar Climbs

Expectations of higher-for-longer US rates are eclipsing traditional safe-haven demand.

Overview

  • Global bullion retreated to roughly US$4,500 per ounce after a brief technical rebound failed to change the downtrend from the March 2 spike near US$5,300.
  • The Federal Reserve kept its benchmark rate at 3.50–3.75% and signalled caution on cuts, while a stronger US dollar has further pressured non‑yielding gold.
  • US wholesale prices rose 0.7% month over month and 3.4% year over year, reinforcing inflation concerns as higher oil complicates the outlook that typically supports gold.
  • Dubai’s retail market shows the pullback on the ground, with 24K gold at Dh541.50 on March 21, roughly Dh103 below March 2 levels.
  • Month to date, gold is down about 13% to around US$4,580 and is on track for its worst performance versus Brent crude since 1973, with mining stocks suffering their steepest slide since 2008.