Gold's Worst Month Since 2008? No Problem—Traders Are Still Throwing $361 Billion at It Daily

Gold slipped 0.5% in early Asian trading on April 7, settling near $4,640 per ounce as the US-Iran conflict continued to weigh on sentiment. The decline extended a brutal March—the metal's steepest monthly drop since October 2008. Gold prices fell more than 13%, snapping an eight-month winning streak. Ouch.

The sell-off began after US-Israel strikes on Iran on February 28 sent oil prices surging. "Gold's March 2026 sell-off was not driven solely by a collapse in safe-haven demand. The deeper transmission path was macro. XAU/USD and gold futures declined sharply due to a significant rise in the US dollar, an end-of-month increase in both nominal and real Treasury yields, and a drastic adjustment in Federal Reserve expectations following the Iran-related oil shock," EBC noted. Translation: the macro gods said "sell" and gold listened, temporarily at least.

But here's where it gets interesting: despite the price weakness, market participation remains on fire. The Kobeissi Letter reported that daily trading volume averaged $361 billion in 2025. Over-the-counter activity and exchange volumes increased to $180 billion and $174 billion per day, while exchange-traded volumes soared to $7 billion. Turns out degens don't care about price—they just want the volatility dopamine hits.

Gold now trades more per day than most major financial assets. At $361 billion daily, it surpasses US Treasury Bills at $186 billion, the EUR/GBP pair at $169 billion, and the Dow Jones at roughly $100 billion. Apple, Nvidia, and Tesla combined averaged just $26 billion per day in 2025. This level of participation is nearly triple the $134 billion daily average seen in 2021. Gold is out here flexing harder than a 20-year-old with a new leverage position.

"Gold market activity is surging at a record pace," the post read. Understatement of the century, Kobeissi.

Central bank buying also continued. According to the World Gold Council, net acquisitions reached 19 tonnes after a subdued January. While the figure marked a recovery from the previous month's slowdown, it still fell short of the 26-tonne monthly average recorded throughout 2025. Central banks are still stacking like there's no tomorrow—which, given the macroeconomic backdrop, might actually be the rational play.