Gold Drops Nearly 2%

2026-03-03 12:58 By Joana Ferreira 1 min. read

Gold slipped nearly 2% to around $5,200 per ounce on Tuesday, pressured by a stronger US dollar and mounting inflation concerns, which curbed demand for safe-haven assets amid escalating geopolitical risks.

The USD strengthened as investors sought shelter amid soaring energy prices linked to the Middle East conflict.

Rising fuel costs added to inflation worries, pushing bond yields higher and prompting markets to reassess the Federal Reserve’s policy trajectory.

Expectations for the next Fed rate cut have moved from July to September, though two 25-basis-point reductions remain priced in.

Meanwhile, the US military is expected to intensify operations against Iran, potentially targeting missile production sites, drones, and naval assets.

A senior Iranian official also warned that vessels attempting to transit the Strait of Hormuz could be targeted, effectively stalling tanker traffic amid heightened security risks.



News Stream
Gold Drops Nearly 2%
Gold slipped nearly 2% to around $5,200 per ounce on Tuesday, pressured by a stronger US dollar and mounting inflation concerns, which curbed demand for safe-haven assets amid escalating geopolitical risks. The USD strengthened as investors sought shelter amid soaring energy prices linked to the Middle East conflict. Rising fuel costs added to inflation worries, pushing bond yields higher and prompting markets to reassess the Federal Reserve’s policy trajectory. Expectations for the next Fed rate cut have moved from July to September, though two 25-basis-point reductions remain priced in. Meanwhile, the US military is expected to intensify operations against Iran, potentially targeting missile production sites, drones, and naval assets. A senior Iranian official also warned that vessels attempting to transit the Strait of Hormuz could be targeted, effectively stalling tanker traffic amid heightened security risks.
2026-03-03
Gold Reverses Gain
Gold fell below $5,300 per ounce on Tuesday, giving up earlier gains, pressured by a stronger US dollar and rising Treasury yields. With Middle East tensions driving oil prices higher, this heightened concerns over US inflation, prompting traders to reduce bets of further Federal Reserve rate cuts. Adding to inflation concerns, ISM manufacturing input prices for February surged to the highest level since mid-2022. Markets now see the next Fed rate cut likely around September, later than previously anticipated. Meanwhile, President Trump warned on Monday that the US would continue attacking Iran until it was no longer capable of posing a threat, signaling that the conflict could last for a month or “far longer.” At the same time, Iran declared the Strait of Hormuz closed and threatened to target any vessels attempting to transit the critical energy corridor.
2026-03-03
Gold Holds Gain as Mideast Tensions Escalate
Gold hovered near $5,320 per ounce on Tuesday, holding onto most of the previous sessions’ gains, supported by strong demand for safe-haven assets amid increasing tensions in the Middle East. On Monday, President Trump warned that the US would continue attacking Iran until it was no longer capable of posing a threat, signaling that the conflict could last for a month or “far longer.”  Meanwhile, Iran declared the Strait of Hormuz closed and threatened to target any vessels attempting to transit the critical energy corridor. The escalation in conflict drove oil prices sharply higher, intensifying concerns over inflationary pressures in the US. This, in turn, triggered a sell-off in Treasuries and reduced bets of further interest rate cuts by the Federal Reserve. Markets now see the next Fed rate cut likely around September, later than previously anticipated.
2026-03-03