Monday 16 / March / 2026
Singapore: Gold prices retreated modestly on Monday as fading prospects for near-term US interest rate reductions—driven by surging energy costs—weighed on the precious metal, though a softer US dollar helped contain the downside.
Spot gold eased 0.2 percent to $5,007.58 per ounce, while actively traded US gold futures for April delivery declined 1.0 percent to $5,011.10 per ounce.
The dollar edged marginally lower, rendering greenback-priced commodities like gold more accessible to holders of other currencies. Concurrently, benchmark 10-year US Treasury yields softened, bolstering the relative appeal of non-interest-bearing bullion.
Crude prices continued trading above the $100-per-barrel threshold as the US-Israeli military action against Iran entered its third week, jeopardising critical petroleum infrastructure and maintaining the closure of the Strait of Hormuz—triggering the most severe disruption to global energy supplies on record.
Escalating oil prices amplify inflationary pressures by elevating transportation and production costs across economies. While gold has historically served as an inflation hedge, the prospect of sustained higher interest rates enhances the attractiveness of yield-generating assets, dampening demand for the non-yielding metal.
Market participants widely anticipate the Federal Reserve will maintain its current interest rate stance for the second consecutive policy meeting when it delivers its monetary policy statement next Wednesday.
In other precious metals trading, spot silver declined 1.2 percent to $79.57 per ounce. Platinum posted gains of 0.8 percent to $2,042.98 per ounce, while palladium advanced 1.0 percent to $1,566.91 per ounce.
