Gold prices remained largely unchanged, while the US dollar weakened, and traders assessed the consequences of the oil market crisis caused by the war in the Middle East. This was reported by Bloomberg, writes UNN.
Details
At the beginning of trading, the price of gold held near the $5,000 per ounce mark – approximately $5,005 as of morning in Singapore. In the previous session, the metal lost about 0.3%.
Market reacts to oil disruptions
Oil prices rose again after falling the day before, as investors assessed the consequences of disruptions in energy supplies. Oil transit through the Strait of Hormuz has almost stopped due to hostilities, and the US has called on other countries to help ensure the security of this strategic route.
Russian oil prices in India hit record high - Bloomberg16.03.26, 15:39
Tensions escalated after Iranian attacks on targets in Persian Gulf countries, including important energy facilities in the United Arab Emirates. At the same time, US President Donald Trump threatened to expand strikes on Iranian oil infrastructure.
Inflationary risks support demand for gold
Analysts note that the prolonged conflict exacerbates inflation fears and may force the US Federal Reserve to refrain from cutting interest rates.
Despite minor fluctuations, gold has already risen by approximately 16% this year. Geopolitical instability and fears of stagflation – a combination of slow economic growth and high inflation – support demand for the precious metal as a "safe haven" for investors.
Against this backdrop, silver rose by approximately 0.1% – to about $80.9 per ounce, while platinum and palladium also showed slight increases.
Europe to pay more for gas due to Middle East war - HSBC forecast17.03.26, 01:37