Spot gold in international markets fell by around 1.5%, remaining under pressure as investors shifted towards interest-bearing assets, reducing demand for non-yielding bullion.
Other precious metals, including silver and platinum, also weakened, reflecting broader sell-offs across commodity markets despite ongoing geopolitical tensions in the Middle East. The sustained decline has seen gold retreat significantly from recent highs, with volatility driven by a firm dollar, rising bond yields and changing macroeconomic expectations.
In Sri Lanka, local gold prices mirrored the global trend on Tuesday, recording notable declines compared to last week. A 24-carat gold pound, which was trading at approximately Rs. 408,000 on March 17, fell to around Rs. 370,000 by March 24 — a drop of about Rs. 38,000 over the week.
Similarly, a 22-carat gold pound declined from around Rs. 375,300 to approximately Rs. 340,400 during the same period, in line with weaker international price movements.
Market analysts note that the current price environment is unusual, as traditional safe-haven demand for gold has been offset by a strong dollar and tighter financial conditions.
For Sri Lankan consumers and traders, the recent decline may offer more favourable buying opportunities after weeks of elevated prices, although those who purchased at higher levels are now facing reduced valuations.
