Gold Price Soars 3% to Break US$4,600, Latest Forecast is Alarming

Gold and silver prices surged even as they plummeted on a monthly basis. According to Refinitiv, gold prices closed at US$4,681.27 per troy ounce on Tuesday (31 March 2026), marking a 3.53% increase. This surge propelled gold to its highest level since 18 March 2026. The rise extended gold’s gains to 6.6% over three consecutive days. However, on a monthly basis, gold prices fell 11.52% in March 2026, the worst drop since October 2008 (-16.8%). Gold prices continued to strengthen today. On Wednesday (1 April 2026), gold traded at US$4,681.27 per troy ounce, up 0.26%. The increase in gold prices was supported by the weakening of the US dollar amid optimism that the war would soon end. The US dollar weakened to 99.96 in yesterday’s trading after being at 100 for two consecutive days. “The current gold rally is quite encouraging due to growing optimism regarding de-escalation in the Middle East. However, I still need to see further increases to confirm this as a sustainable trend,” said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, to Reuters. “In the long term, the underlying trend remains bullish, with fundamental support from de-dollarisation and strong central bank buying.” The Wall Street Journal reported, citing government officials, that US President Donald Trump is willing to end the military campaign against Iran even though the Strait of Hormuz remains largely closed. Meanwhile, US Secretary of Defense Pete Hegseth stated that the coming days would be decisive in the war against Iran and warned Tehran that the conflict would escalate if no agreement is reached. On a monthly basis, spot gold fell 11.8% throughout March, in line with the oil price surge due to the war in the Middle East, which pressured gold. The rise in energy prices heightened inflation concerns and prompted markets to reassess interest rate expectations. Although gold is known as a hedge against uncertainty and inflation, high interest rates increase the opportunity cost of holding gold. BMI maintained its 2026 gold price projection at an average of US$4,600 for the year, while Goldman Sachs still forecasts gold reaching US$5,400 by the end of 2026.