economy
Gold sees worst month since 2013 as Iran war drags on
Gold edged higher on Tuesday morning, but the metal remained on course to notch its biggest monthly decline in almost 17 years.
TL;DR
- Gold futures rose over 2% on Tuesday, but still recorded their worst monthly decline in over a decade.
- Silver futures also climbed more than 6%, but ended March with its worst monthly performance since 2011.
- The declines are linked to lingering uncertainty over the U.S.-Iran war and its potential impact on oil prices and inflation.
- Gold's traditional inverse correlation with real bond yields and the U.S. dollar has re-emerged after being disrupted by the Ukraine war.
- Increased participation from financial investors has led to higher price volatility for gold.
- Goldman Sachs remains constructive on gold, forecasting prices to reach $5,400/toz by end-2026.
- Medium-term risks for gold are skewed to the upside, driven by potential acceleration of diversification into gold due to geopolitical developments.