Gold Lost 12% in March — Goldman and UBS Explain Why
Gold prices dropped 12% in March due to speculative deleveraging, a strengthening dollar, and rumors of central bank selling.Summary
Gold experienced a significant 12% decline in March, driven by a massive unwinding of speculative leverage after traders liquidated positions to cover losses in other assets. A strengthening dollar and geopolitical pressures further exacerbated the sell-off. Additionally, market sentiment was dampened by rumors of central banks, including those in Turkey and Poland, potentially offloading gold reserves to address economic and defense needs.
Despite the volatility, major financial institutions remain optimistic about gold's long-term trajectory. Goldman Sachs maintains a year-end target of $5,400, citing consistent central bank demand as a price floor. Meanwhile, UBS analyst Joni Teves adjusted her forecast slightly to $5,000, noting that potential economic weakness and subsequent monetary easing could provide future upside for the precious metal.
(Source：BeInCrypto)