Gold prices (GC=F) bounced on Tuesday on hopes of a swift end to the Middle East conflict, but the precious metal still posted its worst month in over a decade.
Gold futures jumped 3% as President Trump signaled the war “won’t last much longer.” Meanwhile regional media reported that Iranian leadership has signaled openness for negotiation, sending bullion to above $4,670 per troy ounce.
Even with Tuesday’s rally, gold futures saw their biggest one month more drop since 2013. Meanwhile spot gold was on pace to narrowly close out its worst month since 2008.
But Wall Street sees the monthly decline — which briefly called into question the metal’s safe haven status — as temporary.
“Bottoms are always a process, and I do believe we are in the middle of one,” Otavio Costa, founder and CEO of Azuria Capital, wrote in a post on Tuesday.
Read more about gold’s moves and today’s market action.
Surging oil prices stemming from the Middle East conflict have boosted inflation expectations and fueled concerns that the Federal Reserve and other central banks may not cut rates this year.
On Monday, however, Fed Chair Jerome Powell said inflation expectations were “well anchored” and that the “tendency is to look through any kind of a supply shock.” Those comments sent bond yields down by as much as 10 basis points as traders priced in the possibility of a more dovish Fed.
Strategists also pointed to a cross-asset liquidity grab as higher oil prices and a strengthening dollar have forced foreign buyers to sell best performers and greenback-denominated assets to raise cash. Gold prices had jumped by more than 65% in 2025.
JPMorgan analysts noted March’s brutal flush doesn’t change their medium-term outlook for gold, especially if the economy slows.
The “longer the energy disruption goes on the more sizeable the inflationary and, importantly, growth impacts become,” the analysts wrote.
The backdrop for the metal, JPMorgan analysts added, “will likely quickly flip materially bullish, amplified by a sharp shift towards Fed easing as the employment side of the Fed’s dual mandate takes precedence.”
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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