Global Gold Prices Set to Record Largest Monthly Decline Since 2008
NEW YORK - Global gold prices strengthened during Tuesday morning trading (31/3/2026) local time, but the precious metal is still on course to record the largest monthly decline in nearly 17 years. According to CNBC, at 03:30 local time, the US spot gold price was up around 1% to $4,553.69 per ounce. Meanwhile, the front-month gold futures contract rose 0.6% to around $4,553. This rise occurred amid ongoing uncertainty surrounding the US-Iran conflict, which has entered its fifth week. In a post on Truth Social, Trump stated that Washington is engaged in “serious discussions” with Iranian officials. However, he warned that if an agreement is not reached soon, US forces will attack power facilities, oil wells, and Kharg Island, which is a key infrastructure. On the other hand, US Secretary of State Marco Rubio told Al Jazeera that Washington’s objectives in Iran could be achieved in “weeks, not months.” The Middle East conflict is also weighing on gold prices, as the surge in oil and gas prices heightens expectations of a global inflation spike. This situation is sparking concerns over interest rate hikes in various countries. On a monthly basis, the spot gold price is now on track for a 14.6% decline. If realised, this would be the largest monthly drop since October 2008, when gold prices fell 16.8%. Shackleton Advisers investment manager Wayne Nutland said that over the past four years, there has been a significant change in gold trading patterns. He added that after the Ukraine war, this relationship temporarily shifted, particularly throughout 2025 to early 2026 when gold prices surged sharply, exceeding its historical patterns. “The period after the Ukraine war drastically altered this relationship, especially in 2025 and early 2026 when gold prices rose very sharply, far exceeding the movements suggested by that historical relationship,” Nutland said. However, according to him, following the Middle East conflict, gold prices have returned to following their traditional patterns.