Gold prices fall up to 12% in March, worst since 2013

The gold prices have witnessed sharp correction in the month of March as it fell as much as 12% recording the steepest fall since 2013. This may have unsettled markets, but the fall was largely technical, driven by ETF outflows and leveraged selling rather than any deterioration in fundamentals, a report by Mirae Asset Investment Managers (India) said.

“Central banks continue to provide a structural demand floor. After net purchases of 863 tonnes in the year 2025, WGC expects another 750–850 tonnes of buying in 2026, well above historical averages. While some central banks have reported sales, these have been operational or idiosyncratic, not directional. France’s sale of 129 tonnes reflected a swap and repatriation exercise, with total reserves unchanged, which may not be considered negative. Net sovereign demand remains positive, with the buyer base broadening to include new or long-inactive central banks,” said the report by Mirae Asset report.

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The report highlighted that $12 billion outflows witnessed globally in March, mainly from North America, strong inflows in Asia, especially China. This divergence signals a deeper trend which is Western investors are trading tactically, and Eastern investors are accumulating strategically.

China, in particular, is emerging as a key pillar. Gold demand rose 57% month-on-month in March, ETF inflows hit RMB 59 billion (~$8.5 billion) in Q1, and Central bank buying extended to 17 consecutive months.

The report further highlighted that India is no longer just a consumer of gold—it’s becoming a financial demand stabiliser. Gold ETFs saw Rs 31,561 crore inflows in Q1 FY26, flows remained positive even during price correction.

This suggests Indian investors are moving toward strategic allocation, rather than chasing momentum as the Silver comes with High Returns, Higher Risk, and has delivered eye-catching returns—but with much higher volatility.

“Silver in India has shown higher beta. Indian silver ETFs saw net outflows (₹700 crore) in March 2026, reflecting volatility driven profit taking, even as medium-term industrial demand linked to power, electronics and renewables remains supportive,” said the report.