Global Gold Prices Dip as the US Dollar Strengthens

Global gold prices eased on Thursday trading (5 March 2026) local time, even as tensions in the Middle East continued to flare. The pressure came from a stronger US dollar and shifting market expectations regarding monetary policy by the United States Federal Reserve.

Citing Bloomberg, gold prices briefly fell as much as 1.7% in U.S. trading as the Middle East conflict entered its sixth day without signs of a resolution.

Geopolitical tensions usually push gold higher as the precious metal is seen as a safe-haven asset. However, this time macroeconomic factors have been more dominant in driving price movement.

Persistent inflation also raises the prospect that the Fed will keep rates higher for longer, even widening the possibility of rate hikes to curb price pressures.

That dynamic tends to weigh negatively on gold since the metal yields no interest.

In the derivatives market, traders now expect rate cuts of around 35 basis points by year-end. That is smaller than the roughly 60 basis points anticipated at the end of last week.

ING Bank commodities analyst Ewa Manthey said some of the weakness in gold was triggered by risk-on moves in equities.

‘Part of the pressure on gold appears to be driven by risk-on flows led by the stock market, particularly during the U.S. session. Investors are using gold as a liquidity source, not because they doubt its fundamentals,’ Manthey said.

She added the pressure usually eases when stock momentum strengthens and gains momentum. If that happens, the fundamental support for gold remains firm.

In late January, gold even touched an all-time high above USD 5,595 per troy ounce.

In latest trading, spot gold fell 59.565 points or 1.16% to around USD 5,081.380 per troy ounce. As for silver, prices stood at USD 82.246 or down 1.29740 points, equivalent to 1.55%.