BENGALURU, March 11, 2026, 22:50 IST
Gold slipped on Wednesday, with spot prices down 0.5% at $5,165.93 an ounce as the dollar strengthened and traders leaned into the idea that U.S. rates will stay elevated. April U.S. gold futures fell more sharply, off 1.3% to $5,174.40.
This decline stands out, landing right after gold spiked almost 2% to $5,231.79 — another example of just how quickly sentiment shifts here. Investors are caught between snapping up gold as a traditional safe haven during turbulence, and worrying that pricier oil could force the Federal Reserve to hold rates higher for longer.
The latest U.S. inflation data, released Wednesday, left the debate unresolved. Consumer prices climbed 0.3% in February from January and 2.4% compared with a year ago. Core CPI, excluding food and energy, showed a 0.2% monthly rise and a 2.5% annual increase.
All eyes now shift to the Fed’s March 17-18 meeting. Gold doesn’t offer any yield—it pays zero interest—which can put it at a disadvantage when traders expect rates to remain elevated.
Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, remarked that a steady CPI figure “on any other day” would have been a relief. ING’s Padhraic Garvey described the data as “rear-view mirror,” noting it landed ahead of the war-fueled surge in energy costs. Reuters
Peter Grant, vice president and senior metals strategist at Zaner Metals, described gold as caught in a “push-and-pull” right now—safe-haven buyers show up on war jitters, but worries about persistently high rates keep a lid on things. TD Securities’ Bart Melek pointed out Tuesday that oil dropping back below $100 has made traders more at ease with the idea of eventual Fed cuts. Reuters
Conditions remain tense. Iran military spokesman Ebrahim Zolfaqari floated a $200-a-barrel oil warning as assaults on merchant ships persisted near the Strait of Hormuz—the key route for about 20% of global oil shipments. Fourteen vessels have now been struck since the fighting erupted, pushing up risks for shippers.
The International Energy Agency stepped in with a proposal for a major oil-stock release. According to sources, volumes could top 100 million barrels in just the first month and might reach as high as 400 million barrels altogether. Even so, oil prices bounced back, indicating traders didn’t see the move as enough to wipe out the supply risk.
Short-term pressure on gold looks real. The metal slid over 1% Monday as the dollar strengthened and renewed inflation fears chipped away at rate cut optimism, a swift reaction that highlighted how profit-taking tends to jump in when the dollar gains ground.
Precious metals moved lower across the board. Spot silver dropped 4.1% to $84.82 an ounce. Platinum shed 1.1%, settling at $2,175.60, while palladium eased 1.5% to $1,630.84.
Gold remains above $5,000 despite the recent drop, though it hasn’t reclaimed the Jan. 29 peak of $5,594.82. Traders are left in a familiar spot: geopolitical tensions keep a floor under bullion, but inflation’s sting is still stalling further gains.
