ASX gold shares tumbled 10.1% over the March quarter as a commodities sell-off and a new war tested the two-year gold bull run.
Gold shares have been on a multi-year tear due to a rapidly rising gold price creating exceptional earnings growth for ASX miners.
The gold price increased 65% in 2025, its greatest annual rise in more than four decades, and that came on top of a 27% gain in 2024.
The S&P/ASX All Ords Gold Index (ASX: XGD) rose 125% in 2025 and 16% in 2024, delivering investors some thrilling returns.
And then came the first real test for this magnificent period of growth.
Image source: Getty Images
How did 2026 begin?
The start of 2026 was amazing for ASX gold shares.
The gold price went crazy, rising 30% in less than a month on new year optimism and excitement.
The gold price soared from just over US$4,300 per ounce on 31 December to a record US$5,608 per ounce on 29 January.
ASX gold shares ascended strongly, rising 17.7% over these first few weeks of 2026.
Then came the steepest one-day fall for the gold price in more than a decade.
Gold plummeted 21% over just a few days to US$4,400 per ounce by 2 February.
The sell-off was triggered by the nomination of Kevin Warsh to be the next US Fed chair.
Warsh is known for his hawkish stance on interest rates, and investors worried he may not cut rates as fast as the market was hoping.
Higher-for-longer interest rates are a headwind for the gold price, given that gold is a non-yielding asset.
The Warsh nomination led to a fall in the gold price, followed by panic selling as investors sought to lock in their incredible gains.
ASX gold shares followed suit. The S&P/ASX All Ords Gold Index (ASX: XGD) fell 12.4% between 29 January and 2 February.
Despite the late-month sell-off, ASX gold shares managed an 11% net gain over the month of January.
ASX gold shares recover, then crash even harder
The gold price rebounded in February, rising to about US$5,300 per ounce by month's end.
ASX gold shares also rose by 4.7%.
Then came the war.
On 28 February (US time), Israel and the US attacked Iran, claiming they did so to destroy Iran's nuclear weapons capabilities.
That saw the gold price tank, and ASX gold shares went with it.
Trading Economics analysts say the gold price has experienced its worst monthly fall in March since October 2008, down about 13%.
ASX gold shares have followed the trend, diving 23.7% this month.
The analysts said:
The precious metal faced sustained pressure this month from an oil-driven inflation shock that pushed investors and policymakers toward a more hawkish stance on interest rates.
Meanwhile, Federal Reserve Chair Jerome Powell said long-term US inflation expectations appeared to remain anchored despite heightened uncertainties tied to the conflict.
He added that the central bank's policy stance is well positioned to allow officials to assess the economic impact of the Iran war.
1Q CY26 performance
The ASX All Ords Gold Index finished the first quarter down 10.1%.
Let's take a look at some specific ASX gold shares and their performance over the March quarter.
The market's largest ASX gold share, Northern Star Resources Ltd (ASX: NST) fell 16.7% over the quarter to close at $20.36 today.
The Evolution Mining Ltd (ASX: EVN) share price edged 0.5% lower over the quarter to $12.62 today.
Newmont Corporation CDI (ASX: NEM) shares managed a 0.3% gain over 1Q CY26 to $151.55 today.
The Greatland Resources Ltd (ASX: GGP) share price rose 7.4% over the quarter to $11.34 on Tuesday.
Ramelius Resources Ltd (ASX: RMS) shares declined 13.2% to close out the March quarter at $3.67.
Perseus Mining Ltd (ASX: PRU) shares weakened 8.7% over the quarter to finish at $5.15 today.
Genesis Minerals Ltd (ASX: GMD) shares decreased 19.3% over the quarter to $5.89 today.
Westgold Resources Ltd (ASX: WGX) shares fell 8.7% over the quarter to $5.89 today.
The Regis Resources Ltd (ASX: RRL) share price lost 12.8% to finish the March quarter at $6.65.
