Sharp Fluctuations in Gold Prices During Q1 2026 and a Strong Decline in March

Gold prices recorded a noticeable decline during March trading, despite the strong performance the metal achieved during the first quarter of 2026, in what is considered one of the most volatile periods in the history of the gold market, driven by a combination of monetary and geopolitical factors, rising energy prices, and a stronger U.S. dollar, according to a report by Marsad El Dhab for Economic Studies.

An expert in gold and jewelry affairs stated that local market gold prices decreased by approximately 3% during March, equivalent to 235 Egyptian Pounds per gram. The 21-carat gold gram opened trading at 7525 Pounds before closing the month at 7290 Pounds.

Globally, gold prices incurred sharp losses during March, with the ounce declining by approximately 611 dollars, a decrease of 11.5%. It opened trading at 5279 dollars and closed at 4668 dollars, marking gold's largest monthly decline since October 2008. This was primarily due to the strength of the US dollar and rising bond yields, coinciding with escalating geopolitical tensions and increasing oil prices.

The largest gold losses occurred during the third week of March, when prices fell to 4100 dollars per ounce, recording the largest weekly loss in nearly 40 years. This was against the backdrop of escalating conflict between the United States and Iran and the closure of the Strait of Hormuz, which caused a significant rise in oil prices and prompted investors to liquidate gold to cover their losses in other markets, leading to a sharp selling wave in the precious metal. Despite prices later recovering to above 4600 dollars with the introduction of de-escalation initiatives, uncertainty remained dominant in the market until the end of the month.

Gold Prices During Q1 2026

Despite the declines in March, gold prices witnessed a significant increase during the first quarter of 2026. Local market prices rose by approximately 25%, while the ounce on the global exchange increased by about 8% during the same period.

The report explained that gold prices in local markets increased by 1460 Egyptian Pounds during the first quarter of the current year. The 21-carat gold gram opened trading at 5830 Pounds, then touched 7600 Pounds on March 2nd, its highest level in local market history, before concluding the first quarter's trading on March 31st at 7290 Pounds.

Globally, the ounce increased by approximately 350 dollars during the first quarter. It opened trading at 4318 dollars and touched 5608 dollars as its historical highest level on January 29th, before concluding the first quarter's trading at 4668 dollars.

The report indicated that gold movements during the first quarter of 2026 were characterized by unconventional fluctuations compared to usual economic theories, which assume that geopolitical tensions always drive gold prices up. Gold faced strong pressures despite ongoing tensions, due to the rising dollar, bond yields, and the repricing of interest rate expectations.

The report clarified that the 75% rise in oil prices since the beginning of the year led to increased global inflationary pressures, reinforcing expectations of interest rates remaining high for longer. This represents a pressure factor on gold, as higher interest rates reduce the attractiveness of non-yielding assets.

The report affirmed that gold is now affected by two opposing factors: the first supports it as a haven during crises, and the second pressures it due to the rising dollar and interest rates. This explains the sharp fluctuations witnessed in the market during the first quarter of the year.

The report concluded that the first quarter of 2026 is one of the most volatile periods in the history of the gold market. However, the long-term trend remains supported by rising global debt, increased central bank purchases, and ongoing geopolitical risks, which keep gold one of the most important hedging tools in the global economy during the upcoming period.