Gold Price Surge

 

Gold Prices Surge Over 2% Today: Key Drivers Behind the Rally

Gold prices jumped more than 2% to approach $4,600 per ounce on Wednesday (March 25), extending gains from the previous session. The rally comes amid rising optimism that the prolonged Middle East conflict may ease, following reports that the United States is seeking renewed talks with Iran.

Israeli media indicated that Washington is pushing for a one-month ceasefire to open the door for negotiations. Meanwhile, The New York Times reported that the U.S. has submitted a 15-point proposal to Iran aimed at resolving the conflict.

Market sentiment improved despite Donald Trump ordering the deployment of around 2,000 troops to the region. Investors appear to be focusing on diplomatic efforts, even as the U.S. considers strategies to limit Iran’s control over the strategic Strait of Hormuz.

Previously, gold prices had plunged by as much as 25% from their March peak. The decline was driven by surging energy prices linked to the Iran conflict, which fueled inflation concerns and strengthened expectations that major central banks could raise interest rates this year.

According to Trading Economics, Michael Barr stated that the Federal Reserve may need to keep interest rates elevated for an extended period to effectively manage inflation pressures.

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Gold Under Pressure

 

Gold Prices Remain Under Pressure Despite Trump Delaying Iran Strike

Gold prices trimmed earlier losses at the start of the week after former U.S. President Donald Trump postponed a planned attack on Iran’s energy infrastructure. However, the precious metal continues to face downward pressure amid expectations of prolonged high interest rates.

On Monday (March 23, 2026), spot gold prices fell 1.8% to US$4,407.06 per ounce, after previously plunging more than 8% to hit a four-month low. On a weekly basis, gold recorded its worst performance since 1983. Meanwhile, U.S. gold futures settled 3.7% lower at US$4,407.30 per ounce.

Market participants attribute the decline to continued selling pressure driven by expectations that interest rates will remain elevated. Higher rates tend to reduce the appeal of non-yielding assets like gold.

Trump had earlier announced a five-day delay in a potential strike on Iran’s power facilities, opening the door for possible negotiations to ease tensions between the U.S., Israel, and Iran. However, Iranian officials denied that any such talks were taking place.

The announcement triggered broad movements across global markets. Oil prices dropped sharply, while the U.S. dollar weakened. A softer dollar typically supports gold prices by making the metal more affordable for holders of other currencies, helping gold recover slightly from its lows.

Despite its status as a safe-haven asset against inflation and geopolitical uncertainty, gold has struggled in recent weeks. Rising energy prices linked to tensions in the Middle East have reinforced expectations of higher interest rates for longer, increasing the opportunity cost of holding gold.

Since geopolitical tensions escalated on February 28, gold prices have declined by more than 15%. From its record high of US$5,594.82 in late January, gold has corrected by around 20%.

In other precious metals markets, silver prices rose 2.5% to US$69.47 per ounce. Platinum fell 2.7% to US$1,868.95, while palladium gained 1.7% to US$1.426.77 per ounce.

Global palladium producer Nornickel forecasts that demand from China’s fiberglass industry could reach 0.8 million ounces annually in the medium term, supporting long-term market prospects.

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Gold Prices Fall

Gold Prices Fall Thursday Morning as Fed Warns of Rising Inflation Risks

Gold prices declined in early Thursday (March 19, 2026) trading, pressured by cautious market sentiment following the latest policy stance from the Federal Reserve. According to Bloomberg, as of 07:33 WIB, gold futures for April 2026 delivery on the Commodity Exchange slipped to US$4,843.20 per troy ounce, down 1.08% from the previous session’s level of US$4,896.20 per troy ounce.

The drop in gold prices came after the Federal Reserve decided to hold its benchmark interest rate steady. Fed Chair Jerome Powell also warned that rising energy prices could push overall inflation higher, adding pressure to the precious metal.

Bloomberg reported that Fed officials maintained interest rates during the March 2026 policy meeting and projected only one rate cut this year, citing increased uncertainty driven by ongoing geopolitical tensions in the Middle East.

The Fed emphasized that it continues to monitor risks on both sides of its dual mandate—maximizing employment while maintaining price stability.

“Powell slightly walked back his earlier tone, which turned out to be less aggressive than feared, but still focused on the dual mandate that keeps rates higher for longer,” said Nicky Shiels, Head of Metals Strategy at MKS PAMP SA, as quoted by Bloomberg.

She added that the earlier sharp decline in gold prices had already weakened market confidence, making it harder for prices to recover in the short term.

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