Spot gold rose by 0.9% to $4,550.68 per ounce as of early trading, while U.S. futures for April delivery gained 0.5% to $4,580.70. Despite the uptick, bullion has fallen more than 13% this month—its steepest drop since October 2008—underscoring sustained pressure on the precious metal.
The decline comes amid heightened geopolitical tensions in the Middle East, which have driven up energy prices and inflation concerns. Rather than boosting gold’s traditional appeal as a hedge, the environment has strengthened expectations of tighter monetary policy, pushing investors toward the dollar.
The U.S. currency is on track for its strongest monthly performance since July, supported by safe-haven demand and the country’s position as a major energy exporter. Market participants have also sharply revised expectations for interest rate cuts, with earlier projections of multiple reductions this year now largely priced out.
Analysts say gold’s brief rebound reflects a mix of short-term factors, including lower oil prices, a slight pullback in the dollar, and renewed buying interest at relatively cheaper levels. However, broader market dynamics continue to weigh on sentiment.
Concerns over potential supply disruptions, particularly if the Strait of Hormuz remains closed, are expected to keep oil prices volatile—an ongoing factor that has pressured gold since the conflict began.
Still, some longer-term optimism remains. Analysts at Goldman Sachs project gold prices could climb to $5,400 per ounce by the end of 2026, driven by central bank diversification and a potential shift toward monetary easing in the future.
Other precious metals showed gains on the day, with silver rising 2.7% to $71.89 per ounce, platinum up 1% to $1,917.49, and palladium gaining 1.5% to $1,427. However, all three metals have also suffered declines of roughly 20% so far this month, reflecting broader weakness across the sector.