en.Wedoany.com Reported, Gold prices have recently shown strong momentum, stabilizing around $4,500 per ounce, primarily influenced by geopolitical tensions and expectations regarding Federal Reserve interest rates. Spot gold broke through the $4,500 per ounce level during the trading session before retreating slightly. According to Reuters data, gold rose 0.6% to $4,518.57, while U.S. gold futures closed up 0.7% at $4,557.50.
Market dynamics are closely linked to the ongoing five-week conflict in the Middle East, which has heightened investor concerns about regional escalation and global inflation, particularly in energy prices. Brent crude oil surpassed $112 per barrel, and U.S. oil returned above $100, further intensifying nervousness in international markets.
U.S. President Donald Trump reiterated threats against Iranian energy assets if the Strait of Hormuz is not reopened soon, a critical chokepoint for global oil and liquefied natural gas trade. Tensions escalated further following the involvement of Iran-backed armed groups and new attacks, prompting investors to focus on the possibility of a prolonged conflict.
Statements from Federal Reserve Chairman Jerome Powell were also a key factor. He noted that long-term inflation expectations are anchored and there is no immediate need to raise interest rates in response to the oil shock. This comment lowered market expectations for rate hikes, providing support for gold prices, as gold typically faces pressure when interest rates rise.
Despite the recent rebound, gold's performance in March remained weak, with a cumulative decline of over 14%. This would be its worst monthly performance since 2008, reflecting the combined impact of a stronger U.S. dollar and rising oil prices. Analysts are divided on the short-term trajectory, with some suggesting that a deteriorating global economy could benefit gold, while traders warn that prices remain vulnerable to a correction after reaching historical highs.
Other precious metals such as silver, platinum, and palladium also closed higher, with silver rising to the $70 per ounce region. The movement in gold prices signals the market's rebalancing of portfolios between safe-haven assets and bets on an economic slowdown. The evolution of the Middle East conflict and signals from Federal Reserve policy will determine whether gold can sustain its position above $4,500.
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