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6d ago

Gold Sinks to Four-Month Low After Worst Week Since 1983

An oil-driven inflation scare boosts yields, lifts the dollar, undercuts gold’s safe-haven appeal.

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The Fed reaffirming its monetary tightening stance is seen as a negative for non-yielding bullion.
Any signal that policymakers are willing to look through the oil-driven inflation spike would remove the primary headwind on gold.
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Overview

  • Spot gold fell 2.5% to $4,372.86 early Monday, touching the lowest since January 2 after nine straight declines, with April futures down 4.4% to $4,375.60.
  • The metal slid 11% in the week ending March 20 to $4,497, marking its steepest weekly loss since 1983 as investors exited bullion.
  • The Federal Reserve kept rates at 3.50%–3.75% and signaled persistent inflation risk, the dollar has risen more than 2% this month, and futures now assign roughly a 27% chance of a 2026 hike by December.
  • Oil trading above $110 and a Hormuz shipping squeeze have driven gold’s worst month versus Brent since 1973, while ETFs shed 60+ tonnes and mining shares post their deepest slump since 2008.
  • In Dubai, 24K quotes dropped to Dh541.50 per gram, down about Dh103 since March 2, and analysts see scope for only a mild, capped consolidation in the near term.