Gold quotes have decreased by 25% as the US dollar has strengthened in foreign markets.

Investors have perceived the conflict in the Middle East as the beginning of a new inflationary shock, which has led to expectations that central banks will maintain high interest rates. This situation has been unfavorable for gold, with demand for the precious metal decreasing against the backdrop of rising yields on U.S. government bonds and a strengthening dollar. Analysts at Freedom24 emphasize that the decline in gold prices has been exacerbated by an already speculative market and central bank sales.

The correction in March does not indicate a loss of gold's status as a safe-haven asset, but suggests that it may be under pressure in the initial phase of an inflationary shock. However, if high energy prices affect the economy, gold may regain its attractiveness. After a decline of 20-25%, gold appears less overvalued, and the fundamentals remain favorable. Investors might consider a gradual approach, taking into account possible fluctuations in gold prices depending on geopolitical and economic developments.