As gold dips, is time to buy?

Gold has fallen to its lowest monthly level in 13 years, but the World Gold Council said the drop has been driven by short-term liquidity pressures, not fundamentals, making now a potential buying opportunity.

March saw gold fall 12 per cent to $US4608 per ounce, its steepest monthly decline since June 2013. The World Gold Council attributes the move to deleveraging and momentum-driven selling, including heavy exchange traded funds (ETF) outflows in North America and Europe, rather than shifts in demand or supply fundamentals.

“March was the weakest month for gold since June 2013, a move driven by deleveraging and liquidity dynamics, not fundamentals,” the World Gold Council said.

Despite the sell-off, early signs of stabilisation are emerging. Global gold ETFs saw a 21-tonne inflow in early April, while the first quarter ended with $US606 billion in assets under management, nine per cent higher than full-year 2025. Asian markets led inflows, offsetting Western outflows and marking the seventh consecutive quarter of net gains.

Analysts said March’s volatility was amplified by short-term factors including commodity trading advisor (CTA) position unwinds, multi-asset deleveraging, and bond market moves.

“Gold’s sell‑off during the first three weeks of March was sharp, counter‑intuitive, but not unprecedented,” the World Gold Council said. “It occurred against a backdrop normally supportive for gold: elevated geopolitical tensions and renewed inflation concerns.

“The episode is a reminder that gold is not a contractual hedge. Prices rise only when incremental buyers exceed sellers,”

Technical indicators suggest gold has stabilised above key long-term supports, including the 200-day moving average. For investors, this combination of historically low prices, early inflows and strong medium-term fundamentals presents a compelling entry point.

With geopolitical tensions and inflation risks still underpinning demand, the World Gold Council said price action may remain sensitive to short-term liquidity needs, but long-term, gold’s structural support remains intact, making now a possible attractive time to buy.