Global Gold Prices Recover After Six Consecutive Days of Decline
Global gold prices have started to recover after being pressured for six consecutive days. Dip-buying at lower prices has helped the precious metal rebound despite the shadow of rising oil prices and inflation risks due to the conflict in the Middle East.
Quoting Bloomberg on Thursday (19/3/2026), gold prices rose by up to 0.7 per cent, reversing some losses after a nearly 4 per cent drop on Wednesday. The six-day decline in gold prices marks the longest such streak since the end of 2024.
From a monetary policy perspective, the US Federal Reserve (The Fed) decided to hold interest rates steady in its latest meeting. The Fed also projected only one interest rate cut for the entire year.
On the other hand, oil prices surged after Iran and Israel attacked key energy facilities in the Persian Gulf region.
Entering nearly three weeks of conflict, the rise in oil and gas prices has triggered higher inflation risks. This situation could restrain global central banks from cutting interest rates.
That scenario acts as a negative sentiment for gold, as the precious metal does not yield interest. Additionally, the strengthening of the US dollar has pressured commodity prices traded in that currency.
However, if inflation rises faster than the benchmark interest rate, declining real interest rates could support gold prices in the medium term.
On an annual basis, gold prices have still recorded a gain of around 12 per cent since the beginning of the year. Nevertheless, the momentum has started to stall in recent weeks as expectations for a near-term interest rate cut fade.
Moreover, some investors have sold gold to meet margin call requirements in their portfolios.
In other developments, Powell affirmed that he has no plans to resign from his position amid an investigation by the US Department of Justice. He stated that he would remain in office until that process is complete.
If his successor has not been appointed when his term as chair ends in May, Powell said he would serve as interim chair (pro tempore).
The investigation has sparked concerns about political interference in The Fed, which ultimately erodes confidence in US assets and supports gold prices.
Meanwhile, silver rose 0.2 per cent to 75.49 US dollars, platinum remained relatively stable, and palladium strengthened. The Bloomberg dollar index fell 0.1 per cent after previously rising 0.5 per cent.