Global gold price drops to $5,091 per ounce amid Middle East conflict
NEW YORK — Global gold prices reversed direction early this week, declining sharply as Middle East tensions intensified and oil prices surged, strengthening the US dollar. The precious metal, typically sought as a refuge by investors during crises, weakened by more than one per cent.
Gold prices fell at the end of Monday trading (9 March 2026) local time, or Tuesday morning (10 March 2026) Indonesian Western Time. Spot gold prices declined 1.5 per cent to $5,091.62 per ounce, equivalent to approximately Rp 84,011,730 per ounce (at an exchange rate of Rp 16,500). Meanwhile, US gold futures contracts for April delivery closed 1.1 per cent lower at $5,103.70 per ounce, or approximately Rp 84,211,050 per ounce.
Pressure on gold intensified as the US dollar strengthened, driven by a surge in global oil prices approaching $120 per barrel, or approximately Rp 1,980,000 per barrel. This prompted investors to shift towards more liquid assets amid concerns that prolonged Middle East conflict could disrupt global energy supplies and slow economic growth worldwide.
Additionally, rising inflation concerns and expectations of interest rate increases due to geopolitical uncertainty added further pressure to gold prices.
“However, a prolonged conflict is also expected to sustain demand for safe-haven assets and provide a floor for gold prices,” said Jim Wyckoff, senior analyst at Kitco Metals.
Gold has traditionally been recognised as a hedge against inflation and a safe-haven asset during global volatility. However, gold’s appeal typically increases when interest rates are low, since gold does not provide returns like other financial instruments.
Geopolitical tensions in the Middle East have intensified considerably. Israeli military forces previously stated they had launched strikes on Iran’s central regions and struck Lebanon’s capital, Beirut.
The conflict has significantly impacted global energy corridors. The Strait of Hormuz, a strategic passage for approximately one-fifth of global oil shipments and liquefied natural gas transported by sea near Iran’s coast, was reported to be closed due to conflict escalation.
Wyckoff believes that if inflation data comes in higher than expected, pressure on gold prices could intensify further.
“If we get inflation data that comes in higher than expected, that really would put the Federal Reserve in a difficult position. That could trigger further declines in gold prices,” he said.
The US Federal Reserve is scheduled to hold its next policy meeting on 17-18 March 2026. Markets expect the central bank to maintain its benchmark interest rate.
Other precious metals showed mixed performance. Spot silver prices declined 0.2 per cent to $84.18 per ounce, equivalent to approximately Rp 1,388,970 per ounce. Platinum prices rose 1.1 per cent to $2,158.02 per ounce, or approximately Rp 35,607,330 per ounce, whilst palladium strengthened 2.4 per cent to $1,663.79 per ounce, or approximately Rp 27,452,535 per ounce.