Middle East Conflict Intensifies, Yet Gold Prices Move Remain Limited

JAKARTA — Global gold prices have moved erratically amid escalating geopolitical tensions in the Middle East, US dollar strength, and rising yields on US government bonds. The combination of these factors has constrained the movement of the precious metal, traditionally viewed as a safe-haven asset, rendering it relatively subdued and even weakening on a weekly basis.

According to Reuters reporting on Friday, 13 March 2026, gold prices are estimated to have recorded weekly declines following a surge in oil prices that dampened market expectations for interest rate cuts by major central banks.

Meanwhile, Investing.com reports indicated that gold prices strengthened as markets digested mixed signals regarding geopolitical developments, including tensions between Iran and the United States. Market participants are also awaiting US consumer inflation data (CPI), which is seen as potentially providing guidance on the monetary policy direction of the US Federal Reserve.

Geopolitical tensions have become a dominant factor in gold price movements. Data from CNBC shows that gold prices surged following US and Israeli strikes against Iran on 28 February 2026. However, this rally was short-lived. Substantial selling pressure caused gold prices to fall more than 6 per cent to USD 5,085 per troy ounce on 3 March 2026. In recent days, as conflict escalates, gold prices have traded in a range of USD 5,050 to USD 5,200 per troy ounce. At the latest reading, world gold prices stood at approximately USD 5,175 per troy ounce.

Ross Norman, Chief Executive of precious metals site Metals Daily, identified several factors explaining the limited momentum in current gold price increases. According to him, US dollar strength and rising yields on US government bonds are the primary factors reducing gold’s appeal. “Gold and silver price movements currently appear sluggish, but that may be a natural feeling after some epic moves in recent months,” he told CNBC.