Gold prices experienced a sharp reversal in the week of March 9th to 13th, sparking concerns among investors about a potential shift in the precious metal’s recent upward trajectory. The spot price of gold briefly reached nearly $5,250 per ounce before rapidly declining to close the week around $5,000 per ounce. This translates to approximately 159 million Vietnamese Dong (VND) per tael (1 tael = 37.5 grams), according to reports from Vietnamnet.
The volatility extended to the Vietnamese market, with SJC gold experiencing a similar downturn. The selling price fell from 187.2 million VND/ounce on March 11th to approximately 182.6 million VND/ounce by March 14th – a loss of roughly 4.6 million VND per ounce within days. Investors who purchased gold at higher prices could face losses of up to 7.6 million VND/ounce if selling immediately, given the approximately 3 million VND/ounce difference between buying and selling prices.
A key driver of the price decline is the resurgence of the U.S. Dollar. The Dollar Index (DXY) surpassed 100 points for the first time since November, recovering from a dip below 97 points in mid-February. Expectations surrounding the monetary policy of the U.S. Federal Reserve (Fed) are also significantly influencing market sentiment. Despite persistent high inflation and escalating geopolitical tensions, many investors anticipate a more cautious approach from the Fed regarding interest rate cuts.
Profit-taking following a period of rapid price increases contributed to the sell-off. After recently reaching record highs, some investors capitalized on the opportunity to realize gains. Some institutions may also have reduced their gold holdings to offset losses in other markets, particularly the volatile stock market.
Recent U.S. Economic data further dampened market outlooks. The U.S. GDP growth in the fourth quarter was reported at around 0.7%, falling short of expectations. Simultaneously, inflation remains elevated. This economic context limits the Fed’s ability to implement aggressive monetary easing measures to stimulate growth, potentially continuing to weigh on the gold market.
The price of gold in Euros has also seen fluctuations. According to Bullion Rates, the price per gram of gold was 126.64 EUR on January 13, 2026, rising to 146.40 EUR on March 2, 2026, before settling around 141.21 EUR on March 13, 2026. Gold.de provides a current overview of precious metal prices in both Euro and Dollar per ounce.
Despite the short-term pressures, many analysts maintain a positive long-term outlook for gold, citing ongoing global economic and geopolitical risks. Escalating tensions in the Middle East are a significant factor. The Strait of Hormuz – a critical oil transport route – has been heavily impacted by conflict involving the U.S., Israel, and Iran in the past two weeks. Approximately 20% of the world’s oil and gas supplies transit this narrow waterway, raising concerns about global energy supplies and contributing to a surge in international oil prices, currently near $100 per barrel.
Rising energy prices could reignite inflationary pressures, potentially increasing demand for gold as a safe-haven asset. A recent Kitco News survey revealed a divided opinion among Wall Street analysts regarding the short-term direction of gold prices. Forty percent predict a price increase in the coming week, while 40% anticipate a decline. However, retail investors are more optimistic, with around 63% expecting prices to rise and only 12% forecasting a decrease.
James Stanley, a market strategist at Forex, suggests that gold’s continued trading above $5,000 per ounce indicates a gradual acceptance of a new, higher price level, potentially paving the way for a continued upward trend. Conversely, Rich Checkan, President of Asset Strategies International, cautions that gold prices could experience further correction as the market reacts to monetary policy signals from the Fed, as well as fluctuations in the U.S. Dollar and U.S. Treasury yields.
Daniel Pavilonis, a senior commodity trader at RJO Futures, anticipates that gold and silver prices will continue to move in tandem with the stock market. He warns that further increases in bond yields could set downward pressure on gold and silver, potentially leading to a simultaneous decline in both equity and precious metal markets, with gold potentially falling to around $4,200 per ounce.
Despite the volatility, many institutional investors continue to view gold as an important component of portfolio diversification strategies, citing persistent inflation, rising global debt levels, and geopolitical competition among major powers as factors contributing to an unpredictable economic environment.
