This Week in Review | Iran Conflict Volatility, March PMIs, Gold’s Recent Sell-Off (Mar. 27, 2026)

This week's market review focuses on three major developments affecting investors. First, global markets experienced significant volatility as stocks initially surged and oil fell following news of delayed U.S. strikes on Iran's energy infrastructure, but then reversed course with stocks declining toward correction territory. The analysis emphasizes that markets efficiently price in information almost instantaneously, making timing attempts futile, and references historical examples like the 2022 Russia invasion and recent tariff-related declines that were followed by recoveries. Second, March flash PMI readings across the U.S., UK, eurozone, and Japan showed continued economic resilience with all regions maintaining expansionary territory above 50. Particularly notable was the eurozone manufacturing PMI jumping to 51.4, marking three-year highs, though supply chain disruptions from the Iran conflict were evident in lengthening delivery times. The key insight is that global economic reality is exceeding pessimistic expectations, suggesting the bull market has room to continue. Third, gold's performance defied conventional wisdom as the supposed safe-haven asset fell 18% from its January peak of $5,400 per ounce despite ongoing geopolitical tensions. This decline is attributed to conflicting forces where inflation fears that typically boost gold also drive expectations of higher interest rates, making non-yielding assets like gold less attractive. The analysis concludes that gold's unpredictability makes it unsuitable for long-term strategies compared to stocks.