WGC Sees Green Shoots For Gold To Re-establish Its Positive Trend

Fri Apr 10 2026

While highlighting that March was the weakest month for gold since June 2013, the World Gold Council (WGC) has stated that there are some green shoots for gold to re-establish its positive trend but short-term risks remain.

The report added that some early signs of stabilisation are emerging. The dollar struggled to sustain gains and failed to push meaningfully beyond recent highs, reducing one source of near-term pressure. Early April ETF flows into gold have been positive across regions, it said.

Options markets point to elevated near term hedging demand, but a more constructive bias further out the curve, suggesting investors continue to view gold favourably over a medium term horizon. The report mentioned that policy tightening is likely to be rhetorical (in the US) and expectations of hikes could get unwound quickly.   Any energy-driven CPI impulse is likely to result in demand destruction, limiting pass-through to core inflation and reinforcing the case for an eventual dovish pivot. However, risks remain.

“Should the conflict keep oil prices well in excess of USD 100 per bbl for an extended period, given that the somewhat muted response was reportedly due to buffers that no longer exist, this could risk further cross asset deleveraging, yield blow-outs, or gold mobilisation by the official sector,” WGC said.

While fundamentals remain supportive, price action in the near term is likely to remain sensitive to conflict-driven liquidity needs rather than macro signals alone. Gold fell 12 per cent in March to US 4,608 per oz, its weakest month since June 2013. Gold lost value in all major currencies, but remains up on the year, the report added.

Global gold ETFs shed USD 12 billion (84 tonne) during the month, led almost entirely by North America with USD 14 billion and Europe with USD 0.1 billion. The report added that Asia’s USD 1.9 billion inflows were a welcome positive and highlighted how dipbuying in Asia translated into much larger fund flow but lower equivalent tonne.

Source: https://www.businessworld.in