Gold Price Breaks Below $5,000 per Ounce, Inflation and Fed Uncertainty Intensify

LootboxPhobia · 2026-03-16T08:50:15+00:00

On Monday during the Asian trading session, gold prices declined due to inflation concerns sparked by the U.S.-Israel war against Iran. Market worries over hawkish Federal Reserve expectations intensified, with spot gold and futures falling to 4995.21 and 4996.96 dollars respectively. Demand for gold as a safe-haven asset weakened, pressured by a stronger dollar and rising yields.

LootboxPhobia

2026-03-16 08:50:15

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Investing.com - On Monday during Asian trading hours, gold prices fell below a key level due to ongoing concerns about energy-driven inflation sparked by the US-Israel conflict with Iran, especially as there are little signs of easing in the conflict.

Cautious sentiment ahead of this week’s Federal Reserve meeting also pressured gold, as markets worry that the central bank may adopt a hawkish stance in response to stubborn inflation.

As of 21:25 Eastern Time (01:25 Beijing Time), spot gold declined 0.5% to $1,995.21 per ounce, and gold futures dropped 1.3% to $1,996.96 per ounce.

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There are almost no signs of easing in the Iran conflict. Over the weekend, the US and Israel attacked a critical export terminal, prompting Tehran to issue a stern warning of retaliation.

Oil prices remain above $100 per barrel, though they retreated on Monday. Previously, US President Donald Trump said negotiations are underway to form a coalition to reopen key waterways blocked by Iran.

Trump stated that the Iran war is nearing its end — but Tehran has consistently rejected this claim.

Since the conflict erupted, gold has generally underperformed, as safe-haven demand for the precious metal has been largely overshadowed by inflation concerns driven by the Iran-related conflict, which could keep interest rates elevated for longer.

“Gold is struggling because it is overshadowed by a stronger dollar, rising yields, and uncertainty around Federal Reserve policies,” said analysts at ANZ Bank in a report, adding that liquidations triggered by margin calls also contributed to the weak gold prices.

However, ANZ analysts noted that the fundamental logic of gold as a hedge against geopolitical uncertainty remains intact.

On Monday, the dollar strengthened, while prices for base metals fluctuated. Spot silver fell 1.8% to $79.1805 per ounce, and spot platinum rose 0.2% to $2,031.43 per ounce.

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