Overview
- Gold fell 11.5% in March, its steepest monthly drop in 18 years, and slid more than 8% over the four weeks of the Iran war.
- The Central Bank of Turkey sold 52 tonnes of gold and arranged swaps for about 79 tonnes between late February and late March to raise dollars and support the lira, a package valued near $20 billion by the Financial Times.
- Analysts say heavy outflows from gold ETFs and recent central-bank selling are the main forces behind the downturn, with some investors also taking profits as the dollar strengthened and rate cuts looked less likely.
- Other central banks adjusted reserves as Russia sold about 15 tonnes early in the year and China bought 160,000 troy ounces in March, with last year’s net official buying down roughly 20% and making prices more sensitive to individual moves.
- Wealth managers advise treating gold as portfolio insurance rather than a trade by adding in steps and keeping a defined allocation of about 5–15%, and they urge buyers of physical metal to confirm secure custody that meets LBMA standards.