Gold prices fell by 0.5% in early Asian trading on April 7, coming in around $4,640 per ounce. The ongoing conflict between the US and Iran continues to affect market sentiment.

This decline continues the heavy month of March. Gold recorded the largest monthly drop since October 2008. The gold price fell by more than 13%, ending an eight-month streak of gains.

Worst month for gold since 2008 does not hinder historic increase in trading activity.

The selling wave began after the US-Israel airstrikes on Iran on February 28 pushed oil prices up.

“The selling wave in March 2026 for gold was not only caused by reduced demand for safe havens. The real cause was macroeconomic. XAU/USD and gold futures fell sharply due to a significant rise in the US dollar, the month-end effect of higher nominal and real interest rates on US government bonds, and considerable adjustments in expectations regarding the Federal Reserve following the oil price shock from Iran,” according to a recent article from EBC.

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Despite the weak gold price in the headlines, participation in the gold market remains high. According to The Kobeissi Letter, the average daily trading volume in 2025 was $361 billion.

Moreover, over-the-counter transactions and exchange volumes have increased to $180 billion and $174 billion per day, respectively, while exchange-traded volumes rose to $7 billion.

The Kobeissi Letter states that gold is now traded more daily than most major financial assets. With $361 billion a day, gold surpasses US T-bills ($186 billion), the EUR/GBP pair ($169 billion), and the Dow Jones (approximately $100 billion).

Apple, Nvidia, and Tesla together reached $26 billion per day in 2025. This level is nearly three times higher than the daily average of $134 billion in 2021.

“Activity in the gold market is rising at a record pace,” the report states.

Meanwhile, central banks continue to buy gold. According to the World Gold Council, net purchases increased to 19 tons after a weak January. Although this is higher than a month earlier, it is still below the average of 26 tons per month in 2025.

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