New Delhi, April 10: Gold witnessed its steepest monthly fall in over a decade, dropping 12 per cent in March to USD 4,608 per ounce, according to a report by the World Gold Council. The decline marked the weakest performance since June 2013, with prices slipping across major currencies, although the metal continues to hold gains on a year to date basis.
The council’s Gold Return Attribution Model (GRAM) highlighted that the downturn was largely driven by momentum related factors. These included significant global gold ETF outflows, unwinding of net long positions on Commodity Exchange Inc. (COMEX), and a reversal in price trends.
During the month, global gold ETFs recorded outflows of USD 12 billion, equivalent to 84 tonnes. The majority of these withdrawals came from North America and Europe, while Asia stood out with modest inflows, reflecting continued dip-buying interest in the region.
Market positioning also contributed to the fall. Retail and institutional investors reduced exposure, with non-reportable positions and managed money holdings witnessing notable declines. Analysts suggest that selling pressure intensified as technical levels were breached, prompting commodity trading advisors to unwind positions.
Broader financial market conditions further weighed on prices. Rising bond yields, particularly in the United States, and cross-asset deleveraging led investors to liquidate holdings, including gold, to manage liquidity and risk.
Central bank activity added to the pressure after the Central Bank of the Republic of Türkiye reportedly used around 50 tonnes of gold as collateral, triggering market speculation about potential sales.
Despite the sharp correction, the report noted early signs of recovery in April, supported by stabilising dollar movements and renewed ETF inflows. The council emphasised that investors still view gold as a favourable asset over the medium term, even as short-term risks linked to oil prices and broader market volatility persist.