At the close of trading on March 24 (US time), the spot price of gold rose by $67.1 to $4,473.3 per ounce. The June gold futures contract in the US also closed up $174 at $4,608 per ounce.


Meanwhile, during the current trading session, the price of the precious metal continued to rise by another $124 to $4,597 per ounce, which is $480 higher than the previous low. This recovery represents a more than 11% increase from the bottom in just one day. Currently, the precious metal is still trying to regain the $4,600 per ounce mark before aiming for more important levels at $4,800 and $5,000 per ounce.


Previously, world gold prices formed a V-shaped pattern on the daily price chart after recovering from around $4,100/ounce to $4,470/ounce. However, this upward trend did not last long as increased selling pressure pulled gold prices down, fluctuating within a narrow range of $4,300-$4,400, before rising again yesterday and this morning.


Despite the recovery trend, current gold prices are still 8% lower than a week ago and have fallen more than 10% in the past month. Compared to the most recent peak set at the end of January at around $5,560/ounce, current gold prices are still 17% lower.


The continuous decline in gold prices from their previous peak is due to the USD-Index, a measure of the strength of the US dollar, which has been steadily rising because of geopolitical tensions in the Middle East. According to CNBC, a stronger US dollar makes gold, priced in USD, more expensive for investors holding other currencies.


On the other hand, market observers believe the decline in gold stems from a combination of macroeconomic factors and position adjustments.


Rajat Bhattacharya, senior investment strategist at Standard Chartered, noted that while gold initially rose due to safe-haven demand during the US-Israel and Iran conflicts, prices have recently corrected downwards.


"We often see this pattern repeat during periods of market stress, when investors need to increase their cash reserves to meet margin requirements or simply take profits on assets that are still marketable," he said, adding that the recent strengthening of the US dollar is also putting pressure on gold demand.


Investors are also reassessing expectations for U.S. monetary policy, as persistent inflation reduces the likelihood of the Federal Reserve aggressively cutting interest rates, thus keeping bond yields high.


Notably, high yields diminish the attractiveness of gold, a non-yielding asset. The yield on 10-year U.S. Treasury bonds rose approximately 5 basis points to 4.384% on March 24th.


Some analysts believe the recent sell-off is a natural correction after a prolonged rally driven by geopolitical instability and structural demand.


Zavier Wong, a market analyst at eToro, noted that gold's previous record high was driven not only by inflation but also by broader declining confidence: fiscal deficits, geopolitical fragmentation, and central banks quietly diversifying their reserves away from the U.S. dollar.


Despite increasingly pessimistic market sentiment toward gold, observers generally maintain a positive long-term outlook, believing that structural factors such as geopolitical risks, fiscal concerns, and continued buying from central banks will continue to support the precious metal's upward trend in the long term.


For other metals, spot silver rose 0.4% to $69.43 per ounce, platinum gained 1% to $1,900.13 per ounce, while palladium fell 2.1% to $1,403.75 per ounce.