Good Opportunities to Build Positions

The gold market is undergoing a correction of rare intensity, bringing an end to several months of steady gains. The precious metal is now trading around $4,200 per ounce on the spot market, down 6.5% over the past week and following nine consecutive sessions of declines. This move wipes out all gains accumulated since the start of the year and marks the sharpest weekly correction since the 1980s, with a decline exceeding 10%.
This trend, which may seem paradoxical in a tense geopolitical context, confirms that it is primarily monetary and financial factors that are dictating the trajectory of gold today.
The resurgence of inflationary pressures, fueled by rising energy prices, has reignited expectations of global monetary tightening.
Markets are now pricing in the prospect of further rate hikes, particularly in the United States, leading to rising real yields and a strengthening dollar. In this context, gold, which generates no yield, automatically becomes less attractive, explaining the shift observed toward bond assets. Added to this are technical factors, notably forced selling by investors seeking to offset losses in other asset classes, thereby intensifying downward pressure.
H However, this correction does not signal a structural reversal in the market, but rather a period of adjustment within a cycle still marked by uncertainty. “Historically, declines of this magnitude have often presented prime entry points for long-term investors, particularly central banks and institutional funds” , explains a portfolio manager. For him, the logic is simple: when the market corrects due to cyclical factors, gold’s fundamentals of protection and diversification remain unchanged—or are even strengthened—in an unstable global environment.
It is precisely from this perspective that Moroccan investors should analyze the current situation. In the local market, 18-karat gold—widely preferred for jewelry—is trading at around 990 dirhams (USD 107.07) per gross gram (as of March 23). While this level remains high in absolute terms, the recent correction presents a more favorable entry point than in recent weeks.
For portfolio management professionals, the current decline should not be interpreted as a signal to exit, but rather as a window for strategic positioning. The challenge for Moroccan investors is not to try to anticipate the exact bottom, but to take advantage of this correction phase to gradually enter the market.
A phased approach, which involves spreading purchases over time, helps reduce risk while taking advantage of more attractive price levels.
They continue to recommend allocating between 5% and 15% of a portfolio to this asset class—not for speculative purposes, but as a tool for diversification and protection. In an environment marked by uncertainty, rising interest rates, and geopolitical tensions, this defensive strategy remains highly relevant.
F.T