Front-month contracts settled at $4,614.70 on Thursday after losing $615.80, or 11.77%, over two months, while slipping 0.7% in April.
Deutsche Bank said gold could still reach $8,000 within five years if emerging-market central banks raise gold to 40% of reserves as they diversify away from the dollar.
Gold remains up 7% this year and 39.5% over 12 months, but its muted response during the Iran conflict has fuelled debate over whether its rally has peaked.
As central banks stockpile gold, is the world quietly bracing for the U.S. dollar's decline?
With some nations selling gold to fund wars, could the $8,000 forecast just be a fantasy?
Gold's Historic 19% Q1 2026 Plunge: Causes, Impacts, and Recovery Outlook
Overview
In early 2026, gold reached a record high of $5,594.82 per ounce but then experienced its worst two-month decline, falling nearly 19% to around $4,500 by March. This sharp pullback was driven by excessive investor positioning, a strengthening US dollar, and widespread profit-taking amid rising US Treasury yields and strong economic data. Forced liquidation of leveraged gold positions further amplified the sell-off. Meanwhile, easing geopolitical tensions reduced safe-haven demand, but sustained central bank buying, especially from emerging markets, helped establish a price floor. Despite the correction, gold remains undervalued relative to its strong fundamental support from de-dollarization efforts and ongoing geopolitical risks.