Today (March 23) the global financial market encountered "Black Monday" $XAU $XAG
Spot gold continued to experience a cliff-like drop, at one point falling below the $4100/ounce mark, with a daily decline exceeding 8.7%. As a result, gold prices have erased all gains since 2026, after peaking at nearly 30% earlier this year.
Why has the traditional "king of safe havens" failed during turmoil? Analysts point out that the main line of market trading has shifted from "geopolitical risk aversion" to "liquidity squeeze and monetary policy game".
Firstly, interest rate cut expectations have completely reversed. The Federal Reserve has recently sent strong hawkish signals, with market expectations shifting from rate cuts to possible rate hikes, and rising real interest rates have severely impacted non-yielding gold.
Secondly, the logic of risk aversion has been restructured. The situation in the Middle East has pushed oil prices up, exacerbating inflation concerns, with funds not flowing into gold but instead flooding into the dollar and U.S. Treasuries for safety. More crucially, stock market turbulence has led to leveraged products facing liquidation, forcing investors to sell liquid gold positions to replenish margin, creating a "selling gold to save" stampede effect.
Although gold prices are under pressure in the short term, many institutions believe that the global de-dollarization trend and stagflation risks will still support gold's long-term value.
