BENGALURU, March 20, 2026, 23:34 IST
Gold slid nearly 2% Friday, pushing bullion closer to a third consecutive weekly loss after news broke that the U.S. plans to send thousands more troops to the Middle East—fueling a stronger dollar and higher Treasury yields. Spot gold slipped 1.8% to $4,566.26 an ounce as of 11:03 a.m. ET. April U.S. gold futures shed 0.8%, settling at $4,570.20.
Gold tends to attract buyers when geopolitical tensions flare, but not so much this time. Traders are watching oil and interest rates instead: higher energy costs could stoke inflation, and with rates pushing higher, gold’s lack of yield stands out.
Reuters cited three U.S. officials saying Washington is deploying more Marines and Sailors to the area. The news gave the dollar and U.S. Treasury yields a further lift. Investors focused on Iran’s blockade of the Strait of Hormuz, weighing the potential for sustained high energy prices.
Independent metals trader Tai Wong said “gold and silver are being dragged lower” as markets tackle what he called the “usual wall of worry” heading into the weekend. Metals have been “especially wobbly” following this week’s rate scare, Wong noted. He expects some consolidation—but warned, “it will be a bumpy ride.” Reuters
Selling pressure deepened after Thursday’s slide. Spot gold dropped over 4%, chalking up its seventh consecutive daily decline. Daniel Ghali of TD Securities flagged that gold’s appeal as a hedge against currency debasement was fading, adding there’s still “risk to the downside” in the short run. Reuters
The Fed kept rates unchanged Wednesday, flagging a bump in inflation outlook. By Friday, the U.S. 2-year Treasury yield was up at 3.928%, the 10-year at 4.372%. Major brokerages, meanwhile, said the ongoing war could force the Bank of England and European Central Bank to hike rates, with price pressures lingering.
Softness wasn’t confined to gold—spot silver tumbled 4.6%, with platinum off 1.3% and palladium shedding 2.4%. All three metals are on track for declines this week.
Physical demand across Asia couldn’t tip the scales. In India, dealers trimmed discounts to as little as $75 an ounce—down from $83 last week—as festival buying picked up. Over in China, premiums slipped to a $10-$22 range from last week’s $20-$30. Bernard Sin at MKS PAMP pointed to cooling near-term buying, though he said the “drivers of resilience remain intact.” Reuters
The trade’s got room to reverse if the oil jitters die down. Brent finished Thursday at $108.65 a barrel after spiking up to $119.13. John Kilduff at Again Capital pointed out that a hint of extra supply might check the price surge—“at least for a moment.” Should shipping through Hormuz get less dicey, just as officials are hoping, that might take some heat off inflation bets, yields, and the dollar. Reuters
Gold can’t seem to catch a break. The metal’s still off over 10% since the U.S.-Israeli war on Iran erupted Feb. 28, a drop that points to traders prioritizing oil-fueled inflation worries and tighter policy over the conflict’s direct fallout.
