Gold slides amid strong dollar, rising rates

March 24, 2026 (MLN): Gold prices declined more than 1% on Tuesday, marking their tenth consecutive session of losses, as a stronger U.S. dollar and diminishing expectations of near-term Federal Reserve rate cuts continued to pressure the precious metal.

Currently, spot gold is down 3.49% to $4,334.42 an ounce as of [09:58 am] PST, according to data reported by Mettis Global.

The ongoing weakness in gold shows shifting market expectations around global monetary policy.

Investors are increasingly pricing in a prolonged higher interest rate environment, driven by concerns that escalating geopolitical tensions particularly the conflict involving Iran could stoke inflationary pressures worldwide.

As a result, central banks are expected to maintain a hawkish stance, reducing the appeal of non-yielding assets such as gold.

Since the onset of the U.S.-Israel conflict with Iran on February 28, spot gold prices have dropped around 18%, while the U.S. dollar has strengthened significantly, emerging as a preferred safe-haven asset amid heightened uncertainty.

Geopolitical developments remain in focus, according to Reuters. 

Iran on Monday dismissed reports of negotiations with the United States, following remarks by former President Donald Trump indicating a delay in potential military action against Iran’s power infrastructure due to what he described as constructive discussions.

Meanwhile, crude oil prices held firm above $100 per barrel, supported by ongoing tensions in the Middle East.

Elevated oil prices are adding to inflation concerns by increasing production and transportation costs globally.

While gold is traditionally seen as a hedge against inflation, higher interest rates tend to offset its attractiveness by raising the opportunity cost of holding the metal.

Overall, the combination of a resilient dollar, elevated interest rate outlook, and persistent geopolitical uncertainty continues to weigh on gold prices, with markets closely monitoring both central bank signals and developments in the Middle East.

Copyright Mettis Link News