Gold Drops 11% in Worst Week Since 1983
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- Gold fell 3.5% to $4,488 per ounce on March 21, 2026, marking an 11% weekly drop — the largest since 1983, according to TradingView.
- Gold has declined over 15% since February 28, when U.S. and Israeli strikes on Iran triggered market volatility and reversed a prior rally toward $5,500.
- U.S. Federal Reserve rate outlook weighed on gold, as rising expectations that no cuts would occur in 2026 contributed to the sell-off.
- Jerome Powell stated inflation would rise, reinforcing the Fed’s hawkish stance and further pressuring non-yielding assets like gold.
- Trading Economics data shows gold erased gains from its late January surge, with more than $2 trillion wiped from its market cap in recent weeks.
Why it matters: The 11% drop — the worst weekly performance in over four decades — signals a shift in gold’s safe-haven status amid geopolitical shocks, as rising U.S. inflation expectations and a resilient dollar make holding bullion costlier. This contradicts typical market behavior during crises, suggesting investors are prioritizing yield over traditional hedges.
