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Gold and the Hormuz disruption: A monetary stress test
At March month-end, spot gold fell $610.87 per ounce (or -11.57%) to close at $4,668.06, registering the largest monthly decline since October 2008, during the height of the Global Financial Crisis (GFC). Gold opened the month with modest gains amid escalating U.S.-Iran tensions, but soon drifted lower. In mid-March, gold dropped sharply, breaking below $5,000 and falling nearly $900 to its intraday low in just four days. Spot gold reached an intraday low of $4,099.17 in the overnight market, in the thinnest liquidity zone, when both the Chinese and European trading markets were closed. In our recent special report ... (full story)