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Gold prices have witnessed an unprecedented decline, marking the sharpest monthly fall since 1975. Currently trading near $4,263, gold has plunged by nearly 19.52% in March, making it the most severe one-month correction in over five decades. Previous major declines were seen in 1978, 1980, 1983, and during the 2008 financial crisis—but none matched the intensity of the current fall.

The immediate triggers behind this sharp correction are largely macro-driven. A broad-based global sell-off across asset classes—including equities, crypto, and real estate—has led to forced liquidation in bullion. Additionally, the US Fed’s hawkish stance, with reduced expectations of rate cuts and rising talks of potential rate hikes, has strengthened the dollar significantly.

Moreover, heavy ETF outflows and profit booking after record highs have accelerated the decline. This combination of liquidity tightening, stronger dollar, and risk-off sentiment.