Gold loses its value sharply; Even though the spot price of gold rose 2.2% to $4,687 per ounce, this rebound seems insignificant compared to the 12% monthly collapse. The decline puts the yellow metal on track for its worst monthly performance since October 2008, creating a bleaker outlook.
The “safe haven” discourse clearly seems to be breaking down.
The worst month for $GLD Since… *checks notes* October 2008
Make of it what you will. pic.twitter.com/c1YMMG3nxE-TrendSpider (@TrendSpider) March 20, 2026
The main driver of these measures yesterday was a Wall Street Journal article in which President Donald Trump indicated his willingness to end the US military campaign against Iran, even if the Strait of Hormuz remains partially closed.
“Gold prices rebounded in early trading in the Asia-Pacific region after US President Donald Trump informed his aides of his desire to end the military campaign against Iran… This led financial markets to react in a more risky manner.”according to Ilya Spivak, head of global macro at Tastylive.
In a related development, US gold futures for April delivery rose 1.2% to $4,611.30. The dollar also fell, providing further support to the precious metal, which is denominated in the greenback.
Despite this temporary relief, the overall structure that caused gold’s decline remains in place. The Fed’s policy signals from Powell continue to point to a higher interest rate environment for a longer period of time, which structurally penalizes non-performing assets.
Gold price forecast: will it manage to return to the $5,000 level?
The current rally has spot gold near $4,700, up 1.5% on the day. This number looks solid when considering in isolation the 13% pullback seen in March from previous highs above $5,000.
Spivak highlighted a critical technical reference, saying: “Gold has been stable for about a week now, and last Friday’s rise was particularly notable. This coincided with a decline in Treasury yields, suggesting that markets are starting to view the war in Iran as a potential recession risk.”.
Lower yields reduce the opportunity cost of holding gold, and this is the main driver of the rallies. Quarterly gains remain stable, around 5%, confirming that the long-term trend has not yet been broken.
As for the gold price, if the de-escalation continues, Treasury yields fall and the Fed’s tone on inflation softens, gold could aim to regain resistance levels between $4,800 and $5,000. Goldman Sachs maintains a target of $5,400 per ounce by the end of 2026, supported by the central bank’s reserve buildup and expected monetary easing in the future.
However, if energy prices accelerate again, the Fed announces it will not cut rates before the end of the year, and unrest in the Strait of Hormuz worsens, a breakout of $4,300 would open the door to a decline toward the lower $4,000 levels.
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After the collapse of the price of gold: will the yellow metal regain its shine above $5,000? appeared first on Cryptonews Arabic.