Gold retreats amid oil surge

March 13, 2026 (MLN): Gold prices initially moved higher on Friday but later pulled back, leaving the precious metal on track for a second consecutive weekly decline as rising energy costs dampened expectations of near-term interest rate cuts in the United States.

Currently, spot gold is down 1.81% to $5,085.18 an ounce as of [12:34 pm] PST, according to data reported by Mettis Global.

U.S. gold futures for April delivery also slipped 0.2% to $5,116.30.

A modest easing in U.S. 10-year Treasury yields had earlier supported bullion, which typically benefits when bond yields decline because it does not offer interest.

Despite the brief rise on Friday, gold has still dropped more than 1% over the course of the week, according to CNBC.

Market sentiment has been heavily influenced by escalating geopolitical tensions in the Middle East.

Iran’s Leader, Mojtaba Khamenei, said on Thursday that Tehran would keep the Strait of Hormuz closed as a strategic pressure point against the United States and Israel, raising fears about potential disruptions to global energy supplies.

Oil prices surged above $100 per barrel after reports of attacks on oil tankers in the Gulf and renewed warnings from Iran undermined hopes for a rapid easing of tensions in the region.

Amid the spike in crude prices, U.S. President Donald Trump again urged Federal Reserve Chair Jerome Powell to cut interest rates.

While recent economic indicators suggest inflation pressures have moderated, the impact of higher oil prices linked to the ongoing conflict has yet to be reflected in official data.

Investors are also awaiting the release of the delayed January Personal Consumption Expenditures (PCE) Index, scheduled for publication later on Friday.

In other precious metals, spot silver rose 1% to $84.59 per ounce, platinum gained 1.2% to $2,157.20, and palladium advanced 1.1% to $1,636.27.

Copyright Mettis Link News