Gold Suffers Worst Monthly Drop Since 2008, Then Rallies Over 1%
Gold posted a more than 9% decline in March, its worst monthly drop since 2008, before edging over 1% higher as Middle East tensions appeared to ease and oil prices rallied. Safe-haven demand and FactSet's raised FY2026 outlook bolstered gold, as analysts warn liquidity-driven sell-offs may presage a recovery phase.
1. March Gold Decline
March gold prices fell more than 9%, marking the biggest monthly drop since the 2008 financial crisis. The decline reflected historic supply shocks from the Iran conflict and forced liquidations amid elevated real yields.
2. Early April Rebound
In early April, gold rebounded over 1% as signs of Middle East de-escalation alleviated oil price fears and safe-haven demand returned. Rising crude benchmarks lifted sentiment, with bullion traders anticipating reduced volatility.
3. Analyst Outlook
FactSet raised its FY2026 gold price outlook, reflecting improved demand forecasts and central bank buying. Some strategists caution that current liquidity-driven sell-offs could represent phase two of a historical recovery pattern, pointing to potential upside once stress subsides.