Gold’s price monthly decline remained the main market story on Tuesday, even as bullion posted a sharp daily rebound. Spot gold rose 3.2% to $4,652.31 an ounce, while U.S. gold futures settled 2.7% higher at $4,678.60. Still, the metal was on track for its steepest monthly fall since October 2008.
Investors continued to weigh persistent inflation concerns and expectations of higher interest rates linked to the economic fallout from the Iran war. Because gold does not pay interest, rising rates tend to reduce its appeal compared with yield-bearing assets.
Although the U.S. dollar slipped on the day, it was still heading for a monthly gain. That matters because a stronger dollar makes gold more expensive for buyers using other currencies, adding another layer of pressure to the bullion market.
Spot gold was down 11.8% in March, with higher oil prices tied to the Middle East war intensifying inflation worries. Those energy costs pushed markets to rethink the likely path of interest rates, even though gold is often seen as a hedge during periods of uncertainty and inflation.
Why gold still rose on Tuesday
Analyst Peter Grant of Zaner Metals said the latest rally reflected some optimism about de-escalation in the Middle East. However, he also cautioned that more upside would be needed to confirm a lasting continuation in gold’s recovery.
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Grant added that the long-term trend for gold remains bullish, supported by factors such as de-dollarisation and central bank buying. That view suggests the current monthly weakness may not necessarily alter the broader outlook for the metal.
Gold, silver and platinum outlooks stay mixed
Geopolitical headlines also stayed in focus. The Wall Street Journal reported that President Donald Trump was willing to end the military campaign against Iran even if the Strait of Hormuz remained largely closed. At the same time, U.S. Defence Secretary Pete Hegseth warned that the next few days in the conflict would be decisive.
Looking ahead, BMI kept its 2026 gold forecast at an annual average of $4,600, while Goldman Sachs continued to project gold reaching $5,400 by the end of 2026.
Elsewhere in precious metals, spot silver rose 6.7% to $74.64 but was still down 20.4% for the month. BNP Paribas said silver could trade in a $65 to $75 range through 2026 and may shift into a physical market surplus by 2027. Platinum gained 3.1% to $1,958.05, while palladium rose 5.2% to $1,479.25, with both metals also on track for monthly declines.
