Gold Prices Rebound, Time to Build Momentum Toward Fresh Highs
Gold prices rebounded, supported by a softer US dollar and rising tensions in the Middle East. According to Refinitiv, gold closed at US$5,135.42 per troy ounce on Wednesday 4 March 2026, up 0.96%. The gain followed a 4.5% drop on Tuesday to around US$5,000. Prices remained firmer on Thursday 5 March 2026, at 06:18 Western Indonesian Time (WIB), at US$5,147.59 per troy ounce, up 0.24%. The rise in gold prices was supported by the dollar’s weakness. The dollar index eased to 98.76 from 99 the previous day. Because gold is priced in dollars, a softer dollar tends to support gains in bullion.
“After several days of position unwinds and a firmer dollar, the market has returned to a more normal macro risk-off environment, with silver also rising. A pause in the dollar’s advance and in Treasury yields helps lower the opportunity cost of holding the precious metal,” said Jamie Dutta, market analyst at Nemo.money, to Reuters. “The safe-haven characteristics of gold and silver could shine again,” he added.
Earlier, gold prices fell more than 4% on Tuesday as investors shifted into the U.S. dollar and inflation concerns reduced expectations for rate cuts, which typically lower the opportunity cost of holding gold.
From the Middle East came reports that U.S. forces continued strikes against Iran around the clock, while Israel launched a large-scale wave of attacks on Wednesday targeting Iranian missile sites and air defence systems.
Stock markets in Asia fell as investors unwound large positions in chipmakers amid fears that the widening Middle East conflict could trigger oil-price shocks, which could in turn push up inflation and delay rate cuts.
Investors broadly expect the U.S. Federal Reserve to hold rates at its policy meeting, which runs for two days and ends on 18 March. Linh Tran, senior market analyst at XS.com, said: “If the military campaign lasts longer or spills into other regions, demand for safe-haven assets is likely to continue to support gold above US$5,000 per ounce and potentially open the door to test fresh highs.”