Gold Prices Plummet 14% in March, Worst in 17 Years

Jakarta - Gold prices have strengthened again amid rising demand for safe-haven assets. However, on a monthly basis, the price has suffered a severe setback.

Gold prices rose amid the Middle East conflict, which is fuelling expectations of inflation and higher global interest rates.

According to Refinitiv, gold closed at US$4,510.24 per troy ounce, up 0.39% on trading Monday (30/3/2026). This gain extended gold’s rally, strengthening 2.9% over two consecutive days.

Gold prices weakened on the day. On trading Tuesday (31/3/2026) at 06:22 WIB, gold was at US$4,507.66 per troy ounce, down 0.6%.

“The war is still raging hot with no signs of resolution, thus driving gold prices higher due to safe-haven demand… The market’s short-term focus will be on the war, crude oil prices, bond yields, and the US dollar index,” said Jim Wyckoff, senior analyst at Kitco Metals.

US President Donald Trump stated that Iran’s energy facilities and oil wells would be destroyed if the country does not open the Strait of Hormuz, after Tehran deemed the US peace proposal unrealistic and launched a wave of missiles at Israel.

Worst Since 2008

Despite the two-day rally, gold’s fate in March was dismal. Gold prices have fallen more than 14.6% throughout March, the worst record since October 2008 or over 17 years, when prices plummeted 16.9%.

The surge in energy prices has heightened inflation concerns and prompted markets to reassess interest rate expectations.

Gold is often used as a hedge against inflation and geopolitical uncertainty, but it offers no yield, making it less attractive when interest rates are high.

Federal Reserve Chairman Jerome Powell said the US central bank could wait to assess the impact of the Iran war on the economy and inflation. The Fed previously maintained interest rates in the 3.50%-3.75% range.

Several key US economic data releases are scheduled for this week, including job vacancies, retail sales, the ADP employment report, and nonfarm payrolls data.

Fawad Razaqzada, market analyst at City Index and FOREX.com, noted that the US$4,700–US$4,750 per troy ounce range would be a test level for gold’s short-term recovery.

“If gold fails to break through that level, this upside risks reversing as it did previously,” he said.