Gold ends March with sharp losses despite its recovery in the last session

Gold prices rose at the end of trading on Tuesday, but the precious metal recorded its largest monthly loss since the global financial crisis in 2008, affected by a combination of economic and geopolitical pressures.

This mixed performance came in light of continuing concerns related to inflation, in addition to increasing expectations about keeping interest rates at high levels for a longer period, which limits the attractiveness of gold as a non-returning asset.

The performance of futures contracts. For gold

In terms of daily trading, gold futures for June delivery rose by 2.65%, equivalent to $121.10, to reach the level of $4678.60 per ounce at settlement.

However, gold recorded a sharp decline of 11.51% during the month of March, in the largest monthly loss since October 2008, a period that witnessed the peak repercussions of the global financial crisis. 2008.

Despite these monthly losses, the yellow metal was able to achieve quarterly gains amounting to 6.16% during the first quarter of this year, which reflects the continued long-term support for prices.

Silver records greater fluctuations

Silver was not far from these movements, as futures contracts for April delivery jumped by 6.21% during Tuesday’s session, reaching $74.69 per ounce.

But on the basis On a monthly basis, silver suffered greater losses, as it fell by 19.41% during March, recording the deepest monthly decline since September 2011.

However, silver showed positive performance over the quarterly term, as it rose by 6.50% during the first quarter, achieving gains for the fifth consecutive quarter, in the longest series of rises since 2011.

Factors affecting the markets

Precious metal prices were affected during March Several key factors, most notably:

• Escalating fears of continued global inflation
• Expectations of tightening monetary policy and higher interest rates
• Geopolitical tensions in the Middle East

High interest rates usually reduce demand for gold, due to the high opportunity cost compared to return-generating assets.

Support from geopolitical developments

On the other hand, the markets received some support in the last session from This month, with increasing optimism about the possibilities of reducing escalation in the Middle East.

This came after reports indicated that Donald Trump is considering ending the war with Iran, even if the Strait of Hormuz continues to be closed, which has strengthened investors’ risk appetite.

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