Global Gold Prices Rise Nearly 2 Per Cent
NEW YORK – Global gold prices strengthened by nearly 2 per cent at the close of trading on Tuesday, 10 March 2026 (local time), or Wednesday morning 11 March 2026 (WIB).
The increase was driven by weakness in the US dollar, as well as easing inflation concerns after oil prices declined amid indications that the Middle East conflict could soon end.
According to Reuters, spot gold prices rose 1.9 per cent to $5,231.79 per ounce.
The US dollar index weakened, making gold cheaper for holders of other currencies and thereby increasing investor interest in the precious metal.
Simultaneously, oil prices plummeted 11 per cent after surging to their highest level in more than three years in the previous session.
The decline occurred after US President Donald Trump suggested that the war in the Middle East could end soon, easing concerns about prolonged disruptions to oil supplies.
However, on the ground, signs of easing conflict have not yet emerged.
Tehran residents contacted by Reuters described combined US and Israeli strikes on the Iranian capital on the previous evening as the most intense since the conflict began.
Bart Melek, head of global commodities strategy at TD Securities, said the decline in oil prices continued to support gold, though not at the previous level of strength.
“With oil prices falling from their peak above $100 per barrel, which remains inflationary and therefore supports gold, but is no longer high enough to truly limit the Federal Reserve’s ability to cut interest rates, investors are beginning to feel more comfortable that hedge trading against currency weakness can strengthen again,” Melek said.
Although gold has traditionally been viewed as a hedge against inflation, its appeal can diminish when interest rates are high because the precious metal provides no yield.
Meanwhile, market participants are also awaiting the release of US Consumer Price Index (CPI) data and Personal Consumption Expenditures (PCE) data scheduled for the end of this week.
The US central bank, the Federal Reserve, is expected to maintain its benchmark interest rate at its policy meeting on 17-18 March.
In the meantime, gold prices in Dubai are trading at a discount compared to the London market.
This is because flight restrictions resulting from the conflict have caused more gold to remain in the local market, whilst demand is relatively weak.
Other precious metals have moved in varying directions.
Silver prices in the spot market rose 2.7 per cent to $89.39 per ounce.
Meanwhile, platinum strengthened 2.2 per cent to $2,229.15 per ounce and palladium fell 0.9 per cent to $1,675.50 per ounce.