Gold set for fourth weekly fall as Middle East war boosts rate-hike bets
Bullion has fallen more than 2% so far this week
Add BT as a preferred source
[BENGALURU] Gold prices held steady on Friday (Mar 27), but were on track for a fourth straight weekly decline, as surging energy prices from the Middle East conflict fuelled inflation concerns and bolstered bets on higher-for-longer global interest rates.
Spot gold was little changed at US$4,380.39 per ounce as at 9.01 am Singapore time. Bullion has fallen more than 2 per cent so far this week.
US gold futures for April delivery were steady at US$4,375.
Gold has fallen about 17 per cent since the US-Israeli war on Iran began on Feb 28, pressured by a stronger US dollar, which has gained more than 2 per cent over the same period.
Brent crude held above US$105 a barrel, stoking inflation fears, as the conflict has all but halted shipments through the Strait of Hormuz, a major conduit for roughly one-fifth of global crude and LNG flows.
Higher oil prices threaten to push up transport and manufacturing costs, adding to inflationary pressures. Although inflation typically boosts gold’s appeal as a hedge, high interest rates weigh on demand for the non-yielding asset.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Traders have fully priced out any US Federal Reserve easing for 2026, compared with expectations for two cuts before the Iran conflict erupted, per the CME Group’s FedWatch Tool.
US President Donald Trump said that he would extend a pause on strikes against Iran’s energy facilities into April and that talks with Iran were going “very well”, but an Iranian official dismissed the US proposal to end the war as “one-sided and unfair”.
Separately, US data showed jobless claims rose slightly last week, signalling a still-stable labour market and giving the Fed room to keep rates steady while monitoring inflation risks linked to the war.
Spot silver fell 0.8 per cent to US$67.47 per ounce. Spot platinum lost 0.2 per cent to US$1,823.40, while palladium gained 1.3 per cent to US$1,370.75. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
