2026.03.1317:12:21UTC+00Gold Back on the Defensive

Gold fell below $5,050 per ounce on Friday, pressured by a stronger US dollar and diminishing expectations for interest rate cuts, which together outweighed the metal’s traditional safe-haven appeal. The dollar advanced as investors sought liquidity in the wake of the largest round of strikes to date against Iranian targets and the effective closure of the Strait of Hormuz. Although heightened geopolitical risk typically supports bullion, the prospect of stubborn inflation driven by crude oil prices above $100 per barrel has shifted investor preference toward yield-bearing assets. Market participants have largely abandoned hopes for rate cuts in 2026, as higher energy costs complicate the path to price stability. The resulting surge in the greenback and US Treasury yields has triggered forced liquidations, with investors selling gold to meet margin calls and raise cash. Despite the ongoing regional conflict, the metal is now on track for a second consecutive weekly decline.