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Gold falls as investors favor oil and USD
Gold prices declined in early Asian trading on March 9 as a rapid escalation of the conflict between the United States, Israel, and Iran prompted a large‑scale rotation of capital into oil and the US dollar. Despite the pullback, the yellow metal remained above the psychological $5,000 per ounce mark amid ongoing demand for safe‑haven assets.
Spot gold was down 2% at $5,064.71 per ounce. December futures fell 1.6% to $5,073.21. Although gold traditionally benefits as a haven in times of war, current investor optimism is constrained by fears of a sharp inflation surge. Markets are concerned that higher energy prices will force major central banks back toward tighter monetary policy, increasing the opportunity cost of holding gold.
The dollar index (DXY) rose 0.6% on Monday, while Brent crude posted a dramatic 20% gain, trading above $100 a barrel. The moves followed US and Israeli strikes on Iranian oil facilities and what market participants described as an effective blockade of the Strait of Hormuz by Tehran over the weekend. Around 20% of global oil consumption transits the strait, making crude a priority defensive asset for traders.
Last week, gold lost roughly 2% and continued to trade in a wide band between $5,000 and its January record high of $5,600. Elevated volatility has been driven by speculative activity and uncertainty over interest rate paths. Weak US labor market data published on Friday had raised hopes for the Federal Reserve easing, but attention has shifted toward the inflationary threat from higher fuel costs.
Other precious metals also fell. Silver declined 2.5% to $82.12 per ounce, while platinum registered the largest drop among the group, falling by 4.2% to $2,050.29 per ounce.
Published 16 March 2026
© InstaFintech Group
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© InstaFintech Group
