World Gold Price Falls 2.5 Per Cent, Pressured by US Dollar Strength and Inflation Concerns

NEW YORK — Global gold prices weakened by more than 2 per cent during Monday trading (9 March 2026) local time, or the start of Asian trading, pressured by US dollar strength and inflation concerns stemming from rising energy prices.

According to Reuters, spot market gold prices fell 2.5 per cent to $5,041.89 per ounce, whilst US gold futures contracts for April delivery declined 2.1 per cent to $5,049.40 per ounce.

The US dollar index traded near its highest level in three months. This condition made gold more expensive for holders of other currencies, thereby reducing investor interest in the precious metal.

“Higher bond yields and a stronger US dollar typically dampen investor interest in gold, especially amid inflation concerns driven by high energy prices,” said Bart Melek, Global Commodities Strategy Head at TD Securities.

On the geopolitical front, tensions in the Middle East intensified. On Monday, Iran appointed Mojtaba Khamenei as successor to his father, Ali Khamenei, to become supreme leader, simultaneously reaffirming the dominant position of hardline factions. This situation heightened uncertainty in global markets, particularly regarding energy supplies.

From a monetary policy perspective, investors currently expect the US central bank, the Federal Reserve, to maintain interest rates at its two-day meeting concluding on 18 March, according to the CME Group’s FedWatch tool.

The probability of the Federal Reserve holding interest rates in June 2026 has now risen to above 51 per cent, up from below 43 per cent the previous week.

Beyond gold, other precious metals also fell. Spot market silver prices declined 4 per cent to $80.99 per ounce, platinum fell 3.8 per cent to $2,054.65 per ounce, and palladium dropped 2.1 per cent to $1,590.32 per ounce.