Gold has experienced a noticeable setback in recent weeks, even though the macroeconomic environment could have provided support for the precious metal at first glance.

Thu, 02-Apr-2026 12:23 Gold investing sentiment never stronger outside financial or Covid crisis... GOLD's SHARPEST price drop in 13 years just saw a record number of investors buy the precious metal on BullionVault as the US and Israel went to war with Iran, writes Adrian Ash at the world-leading marketplace. Private investors have seized on gold's price drop because this sudden retreat has given buyers the chance to reset the clock back before January's historic price spike. After setting new all-time highs and rising for 9 months in a row − gold's longest-ever run of unbroken gains − the price of gold sank by 11.8% in March (-10.5% in UK Pounds, -9.7% in Euros) as the oil-price shock drove profit-taking by central banks, institutional investors and traders needing to cover losses in stocks and bonds. Jumping on the price drop, the number of investors choosing to buy gold on BullionVault − now used by 130,000 private investors worldwide and finding 9-in-10 of its clients in Western Europe and North America − rose by almost one-fifth from February's count (+18.2%). That meant buyers topped this New Year's previous record and outnumbered sellers (who rose 0.4%) nearly 3-to-1. It also means that investing sentiment in gold has only been stronger at the peak of the financial crisis and then the Covid pandemic. Tracking the number of buyers versus sellers on BullionVault each month, the Gold Investor Index is a unique gauge of sentiment built solely from actual gold trading decisions. Rebased so that a reading of 50.0 would signal a perfect balance of buyers and sellers, the Global Gold Investor Index set a lifetime high of 71.7 in September 2011, and it hit a series low of 47.5 in March 2024 when gold prices rose to what were then fresh record prices in the absence of any notable economic or financial stress. This March the Gold Investor Index rose to 60.7, adding 2.3 points to reach its highest reading since August 2020 and extending the uptrend begun on the eve of the US presidential election in autumn 2024 . Having risen so sharply during Trump's first year back in the White House, gold has shocked many observers by falling during the Iran War so far. But while gold now faces headwinds from higher inflation threatening a rise in interest rates, the danger of economic stagflation only boosts the need to spread portfolio risk as the geopolitical order breaks down. The breadth of demand says that gold remains a compelling investment in today's uncertain and increasingly dangerous world. In contrast to gold, investing sentiment in silver fell in March as the more industrially-useful precious metal sank in price, with BullionVault's gauge dropping to a 4-month low. But that still put the Silver Investor Index at 60.1, greater than all but 12 of the series' 170 previous monthly readings. Silver's price crash of 19.2% in US Dollar terms was its worst 1-month loss since September 2011 (the worst in GBP since Sept '11 at 17.5%; the worst since March 2020 in EUR at 16.8%). In response, investors using BullionVault bought almost 1.5 tonnes more than they sold as a group, taking total client holdings to 1,134 tonnes worth more than $2.6bn (£2.0bn, €2.3bn). Gold's price drop meanwhile saw BullionVault users buy more gold than they sold by weight for the first time since October, growing their total holdings by 0.2% to more than 43.4 tonnes worth $6.4 billion (£4.8bn, €5.5bn). New account openings fell by 1/3rd from February's figure (-33.2%) and totalled less than 2/5ths of January's all-time record (-60.5%). But March still marked the 8th strongest month for first-time users of BullionVault in the West London fintech's 21-year history. Altogether, the first 3 months of 2026 have now brought more new customers to BullionVault than all but 3 full calendar years since it opened in April 2005. Adrian Ash Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver, platinum and palladium market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times , MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ , plus Italy's Il Sole 24 Ore. See the full archive of Adrian Ash articles on GoldNews. Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News . Source: https://www.bullionvault.com/gold-news/gold-investor-index/buy-gold-iran-war-040220261

Gold prices fall due to interest rate gloom and Middle East tensions. US Fed and major central banks likely to maintain current interest rates. Long-term gold outlook positive, seen as a hedge against risks.

Right now the price of gold sits around $5,100 an ounce, which is double where it sat just over one year ago. And the war in Iran could propel the price upwards even further.

After a strong start, the price of gold slipped twice to around $5,060 during this trading week. Now, it appears that gold prices might manage to stay just above $5,100 heading into the weekend, continuing the persistent sideways movement of the past five weeks.

Gold surged during the 12-day war with Iran last year and then gave up its gains when a ceasefire was announced. But, two weeks into the latest conflict, its price remains largely unmoved.

Geopolitical tensions, and concerns about fiscal policy and central banks, have driven the gold price to where it is today.

Precious metals are having a moment. Gold and silver surged to record highs in January, benefiting from an alignment of macroeconomic factors, evolving supply-demand dynamics, and renewed industrial demand.

Commerzbank’s Carsten Fritsch highlights extreme volatility in Gold and Silver, with sharp swings over consecutive days and record-high nominal prices.

At 15:00 Beijing time on Monday, the Ministry of Commerce of China issued a joint statement on the US-China Geneva Economic and Trade Talks. This significant statement indicated that both sides committed to taking a series of measures before May 14, 2025, including revising and rescinding additional tariffs imposed on each other's goods, as well as suspending or rescinding non-tariff countermeasures. Additionally, both sides will establish mechanisms to continue consultations on economic and trade relations, possibly in the US, China, or a third country. The spokesperson for the Ministry of Commerce of China stated that the US committed to rescinding a total of 91% of the additional tariffs imposed on Chinese goods under Executive Order 14259 of April 8, 2025, and Executive Order 14266 of April 9, 2025, and revising the 34% reciprocal tariffs imposed on Chinese goods under Executive Order 14257 of April 2, 2025. Among these, the imposition of 24% of the tariffs will be suspended for 90 days, while the remaining 10% will be retained. Correspondingly, China will rescind a total of 91% of the counter-tariffs imposed on US goods. For the 34% counter-tariffs imposed in response to US reciprocal tariffs, the imposition of 24% of the tariffs will be suspended for 90 days, while the remaining 10% will be retained. China will also suspend or rescind non-tariff countermeasures against the US accordingly. Upon the release of this news, global financial markets immediately became volatile. The Hong Kong stock market surged significantly, US stock index futures also rose rapidly, while gold prices fell sharply. In the foreign exchange market, the US dollar index surged, and the offshore RMB also strengthened significantly against the US dollar. Global assets responded swiftly. After the joint statement on the US-China Geneva Economic and Trade Talks was issued at 15:00 Beijing time, the gains in the Hong Kong stock market expanded rapidly. By the close of trading, the Hang Seng Index closed up 2.98%, and the Hang Seng Tech Index soared 5.16%, with Sunny Optical Technology, BYD Electronic, XPeng Motors, and others leading the gains. The US stock market was also in high spirits. As of press time, the S&P 500 index futures surged 2.51%, the Nasdaq 100 index futures soared 3.37%, and the Dow Jones index futures rose 1.89%. The VIX index futures, known as the "fear index," plunged 7.39%, indicating a significant easing of people's concerns. The price of gold, a safe-haven asset that had previously surged due to the US-China trade war, fell sharply. As of press time, gold futures fell 3.51% intraday to $3,226.49 per ounce, breaking below the previous low of the phase on May 1 and hitting a new low since April 14. As market sentiment eased, the US dollar rebounded significantly. As of press time, the US dollar index rose 1.26% intraday, hitting a new high since April 10. The offshore RMB also strengthened, rising 0.39% against the US dollar to 7.2108 RMB per US dollar as of press time. The yield on the 10-year US Treasury note rose by 1.44% during the day, hitting a new high since April 14. Market participants: Chinese stocks and the RMB are set to rise. Market participants and economists have given positive assessments of the joint statement issued at the China-US Geneva Economic and Trade Talks. ARNE PETIMEZAS, Research Director at AFS Group in Amsterdam, said, "The US has made such a dramatic 180-degree turn on the tariff issue, which is quite surprising... The market should rebound as a result ." WILLIAM XIN, Chairman of Shanghai Chunshan Pujiang Investment Management Co., Ltd., told the media, " The outcome far exceeded market expectations... Now, there is more certainty . Both the Chinese stock market and the RMB are set to rise over a period of time ."