ACG Metals (LSE:ACG) CEO Artem Volynets expects gold is likely to bounce back higher once the Middle East war is over.
At the time of writing, the gold price sits at US$4,741 ($6,742) an ounce, following sharp swings in the previous sessions, as investors assessed a fragile ceasefire in the Middle East amid sporadic fighting and lingering uncertainty over the reopening of the Straits of Hormuz.
Over the past month, gold’s price has fallen 8.69% but is still 48.58% higher than a year ago.
“In uncertain geopolitical times, people sell what is liquid and that has been gold,” Volynets says.
“Several central banks are selling gold to defend their local currencies. Retail investors are selling gold exchange–traded funds (ETFs), etc. If the war drags on, the energy prices push inflation up and interest rates increase, that will have a negative impact on gold prices.
“However, anybody who has watched [US President] Trump so far would expect him to continue to behave unpredictably and that will also be bullish for gold.”
The Perth Mint says declines in global equity markets prompted investors to liquidate gold positions to raise cash. In combination with investor focus shifting towards surging oils and a strengthening US dollar, these factors placed downward pressure on prices with gold falling as low as US$4,400.
By the end of March, gold was trading around US$4,600 an ounce, representing a monthly decline of 12%.
As previously reported, global investors built allocations to physically backed gold ETFs earlier this year. The World Gold Council reports gold ETFs attracted US$191 billion in January 2026 — representing the strongest month on record.
At the beginning of Q1, North America and Asia drove global demand with the former posting its second-highest monthly inflow on record and the latter achieving its largest.
In February 2026, gold ETFs registered another month of inflows, adding US$5.3 billion — representing the strongest two-month start to a year and the ninth consecutive monthly increase.
Total global holdings rose to a new all-time high, increasing 26 tonnes in the month to 4,171 tonnes.
At the beginning of the year, central bank buying eased in comparison to the prior 12-month average of 27 tonnes. In January, net purchases for the month totalled 5 tonnes, led by Central and East Asian banks.
During March 2026, The Perth Mint sold 43,656 troy ounces of gold and 976,450 ounces of silver minted product.
The Perth Mint General Manager Neil Vance says while minted product sales eased in March, following a “strong” February, this reflects the impacts of short-term market movement rather than any shift in underlying demand.
“Over both the three and 12-month periods, sales remain significantly higher, demonstrating the continued strength of global investor interest in high-quality precious metals,” Vance says.
In February 2026, The Perth Mint sold 67,249 troy ounces of gold and 1.92 million ounces of silver, as this news service reported.
Write to Aaliyah Rogan at Mining.com.au
Images: Unsplash
