Gold Lost 12% in March — Goldman and UBS Explain Why

Gold’s worst month in years was not nearly panic — it was about plumbing.

A 24K99 evaluation reveals the structural forces behind gold’s 12% March collapse, including depth to the sell-off BeInCrypto previously reported.

Inside the Unwind

Gold fell to $4,376 per ounce by late March earlier than recovering to round $4,679. That continues to be far beneath January’s intraday high of $5,626.

The greatest driver was a speculative blowup. 24K99, citing Goldman Sachs analyst Lina Thomas, reported that demand for name choices had hit file highs throughout the January rally. That constructed large leverage throughout the gold market.

When Operation Epic Fury started, merchants rushed to deleverage. Many had held gold longs to hedge brief bets on tech shares and Bitcoin. They liquidated all the things without delay, dragging gold down with the chance belongings it was meant to guard towards.

A stronger greenback compounded the harm. Inflation fears pushed the Dollar Index above 100 in March. Since gold strikes inversely to the greenback, the geopolitical bid was successfully erased.

Rumors of the central financial institution promoting added additional stress. 24K99 reported that Turkey could also be offloading reserves to defend the lira. Poland mentioned promoting gold to fund protection spending. Gulf oil exporters, hit by disruptions in the Strait of Hormuz, might also be liquidating gold to cowl import payments.

Thomas expressed warning about these studies however acknowledged that the rumors are weighing on investor psychology, in line with 24K99. If confirmed, such gross sales would mark a reversal for central banks which were internet gold consumers for years.

But Banks Still See $5,000+

Goldman saved its year-end 2026 gold goal at $5,400, estimating that central financial institution shopping for of 60 tons month-to-month helps costs by about $535 per ounce.

UBS analyst Joni Teves trimmed her forecast to $5,000 from $5,200. She nonetheless sees upside threat if development weakens and triggers financial easing.

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