Surprising Turn: Gold Prices Battered Amid Regional Conflict

Gold prices collapsed on Monday following gains in the previous week. Recent developments also suggest that Middle Eastern tensions could have a negative impact on gold.

According to Refinitiv data, gold prices on Monday, 9 March 2026 at 06:36 WIB, stood at US$5,083.79 per troy ounce, down 1.7%.

This decline contrasts sharply with the previous Friday. Gold closed at US$5,169.92 per troy ounce on the last trading day of the previous week, Friday, 6 March 2026, up 1.83%.

Nevertheless, gold prices fell 2.03% over the week, ending a four-week winning streak where prices had risen consistently.

Recent movements demonstrate how quickly market sentiment can change. Gold is trading within significant intraday volatility, requiring investors to exercise greater caution.

Short-term price rebounds may fade if the dollar continues to strengthen, even if medium-term prospects remain positive.

After rapid gains, gold typically pauses before resuming its upward trajectory.

In such conditions, price declines are often used by investors to buy if macroeconomic support remains strong.

However, if prices fail to hold at current levels, further gains could be delayed, although medium-term prospects remain positive.

US Economic Data Mixed; Where Is Gold Heading?

Weaker US employment data has increased confidence that the Federal Reserve could begin cutting interest rates by late 2026.

Central bank purchases and ongoing geopolitical tensions are providing support, whilst US dollar strength and recent volatility are limiting sharper gains.

Lower interest rates typically reduce real yields, which benefits non-yield-bearing assets such as gold.

Ongoing geopolitical risks also maintain strong demand for safe-haven assets.

News of conflicts or trade tensions often triggers rapid inflows into gold.

However, developments in the Middle East are also weighing on gold prices. Rising oil prices suggest inflation risks could spike, meaning the Federal Reserve is unlikely to cut rates quickly.

Middle Eastern tensions have also driven the dollar index up to 99.46 on Friday of the previous week, the highest level since November 2025.

Gold is traded in US dollars, so a stronger dollar can limit gains or trigger price corrections.