Gold Dips as Middle East Tensions Lift Oil, Weigh on Rate-Cut Bets

2026-03-08 23:19 By Farida Husna 1 min. read

Gold prices fell to around $5,110 per ounce on Monday as a firmer US dollar and diminishing expectations of Federal Reserve rate cuts offset safe-haven demand from the escalating Middle East conflict.

Oil prices surged above $100 per barrel for the first time since 2022 as the war with Iran entered its second week, fueling concerns about renewed global inflation.

Disruptions intensified after oil tankers were effectively blocked from the Strait of Hormuz, prompting several Middle Eastern producers, including Kuwait, Iraq, and the UAE, to curb crude output.

The conflict has already halted roughly a fifth of global crude and natural gas supply as Iran targets ships in the vital shipping route.

The surge in energy prices could complicate the Federal Reserve’s policy outlook, reinforcing expectations that rate cuts may be delayed and increasing the risk of stagflation, particularly after last week’s weak jobs report.



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