【Gold Price Trend】Gold Price Breaks Below $5,000, Middle East War Enters Third Week, Oil Prices Continue to Rise

SocialAnxietyStaker · 2026-03-16T03:19:29+00:00

Middle East tensions continue to push oil prices higher, while gold prices have retreated to $4,995 per ounce. Escalating conflict between the US and Iran has intensified inflation concerns, reducing market expectations for rate cuts. Although oil price pressures increase in the short term, long-term dynamics could drive investors toward gold for value preservation.

SocialAnxietyStaker

2026-03-16 03:19:29

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As the Middle East war enters its third week, oil prices continue to rise, while gold prices have been fluctuating and remain relatively soft on Monday, falling below $5,000 per ounce. Gold briefly dipped to $4,967, with the latest quote at $4,995, down 0.5%.

The US attacked Iran’s main oil export hub, and Tehran retaliated with strikes on energy infrastructure in several Arab countries, pushing oil prices higher. Rising energy costs and inflation concerns triggered by Middle East conflicts have weakened market expectations for rate cuts. Higher borrowing costs generally put pressure on non-yielding precious metals, negatively impacting gold prices.

On the other hand, last Friday’s US consumer spending data showed little growth in January, as economic expansion was weaker than expected and had already slowed before the Iran war. Meanwhile, US consumer confidence fell to a three-month low amid growing worries that the Iran conflict could impact gasoline prices.

Currently, traders believe the likelihood of a rate cut at this week’s Federal Reserve meeting is almost zero.

However, while rising oil prices may temporarily increase pressure on gold, concerns about stagflation could prompt investors to turn to gold as a better long-term store of value.

Finance Hot Talk

Is the safe-haven role of gold failing? Are war fears triggering rate hike concerns?

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