New York, March 23, 2026, 13:20 EDT
Gold clawed back some ground Monday after hitting a four-month trough, with prices recovering as U.S. President Donald Trump held off on strikes targeting Iranian power plants and energy sites. Early selling left bullion deeply in negative territory, however. Spot gold slipped 0.4% to $4,470.36 an ounce, after tumbling over 8% earlier to $4,097.99. U.S. gold futures shed 2.2%, landing at $4,471.60.
The move landed right after gold logged its steepest weekly loss since 1983, underscoring just how abruptly the metal can shed backing once inflation jitters and rate worries flare up. Gold, lacking any yield – it doesn’t pay interest – tends to see traders cut positions when oil rallies fuel prospects of higher borrowing costs.
Tensions from the Middle East flare-up triggered a new oil shock, pushing Brent crude down roughly 8% to $103.27 a barrel. The move came after Trump announced a five-day delay on possible military action targeting Iranian power plants—news that dialed down some of the urgency behind the selloff sweeping gold and other assets.
Tai Wong, independent metals trader, called metals “especially wobbly” coming off this week’s sharp rate-hike-driven drop and predicted more consolidation ahead—just not a quiet stretch. Monday played out as he anticipated: sellers dominated early, then buyers crept in once the headlines shifted. Reuters
Independent analyst Ross Norman flagged some “bargain hunting” coming in at the lows. Saxo Bank’s Ole Hansen said gold could get support once investors are done liquidating to offset other losses. Despite the bounce, gold’s still off about 17% since Feb. 28 and trails its Jan. 29 record of $5,594.82 by around 22%. Silver edged up 0.6%, palladium jumped 3.6%, and platinum slipped 1.3%. Kitco
TD Securities commodity strategist Daniel Ghali pointed out that the drivers which lifted gold last year are fading, and he continues to expect more near-term downside. That’s part of the reason bullion hasn’t shown its usual safe-haven response, even as the conflict in the Middle East has escalated.
The bounce might not last. Iranian media reported there are no talks happening with Washington. Chris Larkin, managing director of trading and investing at E*TRADE from Morgan Stanley, pointed out that for any relief rally to stick, there’s got to be real progress on the geopolitical side.
Elias Haddad, global head of markets strategy at Brown Brothers Harriman, labeled the response a “knee-jerk” move, noting that risk assets won’t see lasting gains unless investors decide there’s real de-escalation rather than just a lull before renewed tensions. Gold, for its part, sits caught between the boost it gets from the easing oil shock and the drag from persistent inflation plus those higher-for-longer rate concerns. Reuters
