Gold costs fell on Monday (March 9, 2026) as a powerful greenback weighed on US dollar-priced bullion, whereas rising power prices fueled inflation considerations and additional dimmed prospects for short-term rate of interest cuts.
Spot gold was down 1.5% at $5,091.02 an oz at 0233 GMT, after falling greater than 2% earlier within the session. US gold futures for April supply fell 1.2% to $5,097.40.
The greenback rose to its highest stage in additional than three months, rising the worth of bullion for holders of different currencies.
The yield on the 10-year U.S. Treasury observe rose to its highest stage in a month, making it dearer to carry gold, which does not yield any yield.
“Regardless of the market turmoil, gold is on the again foot at present as triple-digit oil costs push the greenback larger on inflation considerations and waning expectations for rate of interest cuts,” stated Tim Waterer, chief market analyst at KCM Commerce.
“A lot of the gold worth rally over the previous 12 months was primarily based on a dovish outlook for US rates of interest, however given the inflation threat posed by $100 a barrel oil, a fee minimize is now not a given and gold has been repriced accordingly,” Waterer stated.
Buyers count on the U.S. Federal Reserve to maintain rates of interest unchanged on the finish of its two-day assembly on March 18, in response to CME Group’s FedWatch software. The chance of the occasion being held in June rose from beneath 43% final week to greater than 51%.
Bullion is a non-yielding asset, so it tends to develop in a low rate of interest surroundings.
Amid heightened geopolitical tensions within the Center East, Iran named Mojtaba Khamenei as supreme chief on Monday to exchange his father Ali Khamenei, signaling that the hardliners will stay firmly in energy.
Spot silver fell 1.5% to $83.09 an oz. Spot platinum fell 1.1% to $2,111.04 and palladium fell 1.4% to $1,603.25. –Reuters
