This morning, gold prices dropped sharply again.

MaticHoleFiller · 2026-03-24T08:11:03+00:00

On March 23, international gold prices plummeted sharply, with COMEX gold dropping to $4,322 per ounce at one point, posting a weekly decline of 10.49% and marking the largest single-week drop since 1983. Analysts believe the market focus has shifted toward inflation expectations and monetary policy, with a strong dollar suppressing gold demand. Although short-term sentiment remains depressed, long-term prospects remain optimistic.

MaticHoleFiller

2026-03-24 08:11:03

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On March 23, international gold prices dropped sharply again. As of 10:10 AM, COMEX gold briefly fell to $4,322 per ounce, down over 5%; London spot gold briefly dropped to $4,318.825 per ounce, down more than 3%.

According to Yicai, just last week, international gold prices experienced a dramatic plunge.

As of Beijing time March 21, the London spot gold price fell below the key level of $4,500 per ounce, with a weekly decline of 10.49%, marking the largest weekly drop since March 1983.

Despite ongoing tensions in the Middle East, gold, traditionally a safe-haven asset, has performed “unusually” poorly. What are the reasons behind this?

According to CCTV Finance, analysts point out that the main reason is that market trading focus has shifted from “geopolitical safe-haven” to “inflation expectations and monetary policy battles.” The recent conflict in the Middle East has ignited the crude oil market, quickly fueling concerns about a resurgence of global inflation.

Faced with the potential risk of stagflation, major central banks around the world may need to reassess their monetary policy paths. Currently, the CME FedWatch Tool shows that the market expects less than a 10% chance of the Federal Reserve cutting interest rates this year, and there is even a possibility of rate hikes. This increases the attractiveness of interest-bearing assets like bonds, while gold, which does not generate interest income, becomes less attractive. Meanwhile, the recent strengthening of the US dollar index has suppressed gold demand, putting downward pressure on gold prices.

Despite the short-term sharp decline, many Wall Street institutions remain optimistic about the long-term prospects of gold. Analysts believe that ongoing central bank gold purchases, de-dollarization trends, and geopolitical uncertainties will continue to support gold prices. JPMorgan still forecasts that gold futures could reach $6,300 per ounce by the end of 2026, while Deutsche Bank maintains its long-term target price of $6,000 per ounce.

Source: China News Service, combined reports from Yicai and CCTV Finance

Editor: Yan Jiaxin

Chief Editor: Zhao Yifan

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