NEW YORK \u2013 Global gold prices strengthened by nearly 2 per cent at\nthe close of trading on Tuesday, 10 March 2026 (local time), or\nWednesday morning 11 March 2026 (WIB).<\/p>\n
The increase was driven by weakness in the US dollar, as well as\neasing inflation concerns after oil prices declined amid indications\nthat the Middle East conflict could soon end.<\/p>\n
According to Reuters, spot gold prices rose 1.9 per cent to $5,231.79\nper ounce.<\/p>\n
The US dollar index weakened, making gold cheaper for holders of\nother currencies and thereby increasing investor interest in the\nprecious metal.<\/p>\n
Simultaneously, oil prices plummeted 11 per cent after surging to\ntheir highest level in more than three years in the previous\nsession.<\/p>\n
The decline occurred after US President Donald Trump suggested that\nthe war in the Middle East could end soon, easing concerns about\nprolonged disruptions to oil supplies.<\/p>\n
However, on the ground, signs of easing conflict have not yet\nemerged.<\/p>\n
Tehran residents contacted by Reuters described combined US and\nIsraeli strikes on the Iranian capital on the previous evening as the\nmost intense since the conflict began.<\/p>\n
Bart Melek, head of global commodities strategy at TD Securities,\nsaid the decline in oil prices continued to support gold, though not at\nthe previous level of strength.<\/p>\n
\u201cWith oil prices falling from their peak above $100 per barrel, which\nremains inflationary and therefore supports gold, but is no longer high\nenough to truly limit the Federal Reserve\u2019s ability to cut interest\nrates, investors are beginning to feel more comfortable that hedge\ntrading against currency weakness can strengthen again,\u201d Melek said.<\/p>\n
Although gold has traditionally been viewed as a hedge against\ninflation, its appeal can diminish when interest rates are high because\nthe precious metal provides no yield.<\/p>\n
Meanwhile, market participants are also awaiting the release of US\nConsumer Price Index (CPI) data and Personal Consumption Expenditures\n(PCE) data scheduled for the end of this week.<\/p>\n
The US central bank, the Federal Reserve, is expected to maintain its\nbenchmark interest rate at its policy meeting on 17-18 March.<\/p>\n
In the meantime, gold prices in Dubai are trading at a discount\ncompared to the London market.<\/p>\n
This is because flight restrictions resulting from the conflict have\ncaused more gold to remain in the local market, whilst demand is\nrelatively weak.<\/p>\n
Other precious metals have moved in varying directions.<\/p>\n
Silver prices in the spot market rose 2.7 per cent to $89.39 per\nounce.<\/p>\n
Meanwhile, platinum strengthened 2.2 per cent to $2,229.15 per ounce\nand palladium fell 0.9 per cent to $1,675.50 per ounce.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/global-gold-prices-rise-nearly-2-per-cent-1773197604", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }