Gold Prices Soar, Beware! Bandits Quietly Scoop Up Massive Amounts
Gold prices surged almost 3% following heavy buying activity as prices dipped after this week’s initial correction. Investors are seeking signs of easing conflict in the Middle East.
According to Refinitiv, gold prices closed at US$4,492.48 per troy ounce on Friday’s trading (27/3/2026). The price jumped 2.6%.
This increase is good news after the price fell 2.8% on Thursday (26/3/2026). Yesterday’s rise also extended the rollercoaster of gold prices this week.
On Monday, the price dropped 1.8% but surged 1.5% on Tuesday and climbed 0.7% on Wednesday. It plummeted on Thursday and soared again on Friday.
Over the past week, gold prices strengthened by 0.11%. This gain broke a streak of three consecutive weeks of declines.
“The recent price drop has created an excellent opportunity because the market has corrected… the price fell below the 200-day moving average… this is a fantastic time to buy gold,” said Daniel Pavilonis, senior market strategist analyst at RJO Futures, quoted from Reuters.
Spot gold briefly hit a four-month low of $4,097.99 on Monday.
“We will see a gradual rise in the coming weeks. And if this Iran situation can ease, there is a big opportunity for the market to return to risk-taking,” Pavilonis added.
Oil prices remain above $110 per barrel despite US President Donald Trump extending the deadline for Iran to reopen the Strait of Hormuz, after Tehran rejected a 15-point US proposal to end the conflict.
The war, now entering its fourth week, has spread in the Middle East, hitting the global economy with surges in energy and fertiliser prices, sparking inflation concerns.
Rising inflation has shifted Federal Reserve policy prospects towards possible rate hikes, which typically pressure gold by increasing the opportunity cost of holding the non-yielding asset.
According to the CME FedWatch Tool, market participants have now fully removed expectations of a US rate cut in 2026. Previously, markets anticipated two cuts before the war began.
However, Commerzbank has raised its gold price forecast, targeting $5,000 per ounce by year-end from the previous $4,900, reasoning that the latest correction is unlikely to last long.
The bank expects the Iran war to end in spring, which could ease current US rate hike expectations. They see the Fed resuming rate cuts by year-end, with a total reduction of about 75 basis points by mid-next year.
“Initial liquidity needs have been met, and now gold can move again. Smart investors are using the price dip as an opportunity to add positions,” said Nitesh Shah, commodities analyst at WisdomTree.
Lower gold prices also attracted buying interest in India this week, while Turkey’s central bank gold reserves recorded the largest weekly decline since August 2018 due to the conflict’s impact.