Gold Slumps for Ninth Session in Historic Retreat Toward $4,000 Milestone
AI Podcast
Gold prices have experienced a sharp decline, falling over 20% in nine sessions and reaching a low of $4,100/oz, a level not seen since November 2025. Escalating Middle East tensions, specifically concerning Iran and the Strait of Hormuz, initially drove this downturn, impacting global stock markets and precious metals. Despite the significant price drop and shaken investor confidence, Wall Street maintains a bullish outlook. Bank of America forecasts gold to reach $6,000/oz within 12 months, with UBS projecting $6,200/oz due to ongoing geopolitical risks. Technically, gold may retest $4,000 before a rebound.
TradingKey - Gold prices fall for nine consecutive sessions by over 20%; the $4,000 mark is poised for an oversold rebound.
On March 24 (GMT+8), gold prices remained weak, with spot gold ( XAUUSD) prices falling by approximately 1% to a current level of $4,366/oz. Yesterday, gold prices briefly plunged to $4,100, hitting a new low since November 2025. Panic has gripped the market, with concerns that gold prices may once again break below the psychological $4,000 threshold.
Gold Price Chart, Source: TradingView
Last weekend, U.S. President Trump demanded that Iran open the Strait of Hormuz within 48 hours or face strikes on its power plants. The Iranian armed forces responded, stating that if attacked, they would completely close the Strait of Hormuz and launch massive strikes on all Israeli energy infrastructure, countries hosting U.S. military bases, and destroy all U.S.-owned companies in the Middle East.
As tensions in the Middle East escalated again, global stock markets faced another 'Black Monday,' with Asian markets plunging collectively and dragging down precious metals such as gold and silver. Furthermore, reports indicate that the U.S. is ready to deploy ground combat troops in Iran, a move that undoubtedly adds fuel to the fire, further driving up oil prices, inflation, and interest rates, causing gold prices to weaken.
Yesterday, Trump announced a five-day suspension of strikes against Iranian energy facilities. Following these remarks, gold prices quickly rebounded by over $300, resulting in a long lower shadow on the daily candlestick chart. From a technical perspective, gold prices are expected to continue downward to retest the $4,000 psychological level before gradually rebounding amid the panic, though breaking the $5,000 resistance level will be difficult.
Over the past nine trading days, gold prices have plummeted from a high of $5,200 to a low of $4,100, a cumulative drop of over 20%, severely damaging investor confidence. However, Wall Street remains bullish. Bank of America believes gold could reach $6,000/oz within the next 12 months, while UBS has an even higher target, suggesting that amid U.S.-Iran tensions, it could rise to $6,200/oz.
