Gold rises sharply as weaker dollar boosts demand

Global gold prices rose by almost 2% on Tuesday (March 10), supported by a weaker US dollar and easing inflation concerns, as lower oil prices fuelled hopes that the conflict in the Middle East might end sooner than feared.

Reuters reported that spot gold climbed 1.9% to US$5,231.79 an ounce as of 1.31pm US Eastern time (5.31pm GMT). US gold futures for April delivery settled 2.7% higher at US$5,242.10.

The dollar index weakened, helping to support bullion prices, as a softer greenback makes dollar-priced gold more affordable for holders of other currencies.

Oil prices fell on Tuesday after soaring to their highest level in more than three years a day earlier, following US President Donald Trump’s prediction that the war in the Middle East could end soon. That helped ease fears of a prolonged disruption to global oil supplies.

However, the situation on the ground has shown no clear sign of de-escalation. People contacted by Reuters in Tehran said overnight US and Israeli air strikes on the capital were the fiercest since the conflict began.

“Once crude came off the highs above US$100 a barrel, although it remains at a level that still adds to inflation pressure and is therefore still supportive for gold, it is no longer high enough to seriously constrain the Fed’s ability to cut rates,” said Bart Melek, global head of commodity strategy at TD Securities.

“Investors are therefore becoming a bit more comfortable that the debasement trade may be able to come back into play as we move forward,” he added.

Although gold is widely seen as a hedge against inflation, it tends to lose some appeal when interest rates rise, because it does not generate yield.

Investors are now awaiting US consumer price index (CPI) data and personal consumption expenditures (PCE) figures due later this week. The Federal Reserve is widely expected to leave interest rates unchanged at its March 17-18 meeting.

Meanwhile, gold in Dubai was trading at a discount to London prices because flight restrictions linked to the conflict have left much of the bullion trapped in the local market, while demand remained subdued.

Spot silver rose 2.7% to US$89.39 an ounce, platinum gained 2.2% to US$2,229.15, while palladium slipped 0.9% to US$1,675.50.

Morning update (March 11, 2026):

Bloomberg reported that spot gold edged down 0.1% to US$5,188.50 an ounce at 6.50am Singapore time on Wednesday. Silver rose 0.1% to US$88.43, while platinum and palladium both declined. The Bloomberg Dollar Spot Index rose 0.1%, reversing part of its previous decline.

Gold traded near US$5,190 an ounce after gaining 1% in the previous session, as investors assessed conflicting statements from US officials over the Middle East war, which has added to the sharp volatility in energy markets.

The White House said the United States was not escorting oil tankers through the Strait of Hormuz, contradicting a now-deleted social media post by Energy Secretary Chris Wright. Oil prices rose again after tumbling heavily on Tuesday.