Global gold prices extend slide as stronger dollar and higher US bond yields weigh
Global gold fell after the dollar strengthened and US Treasury yields rose on reports of additional American troop deployments to the Middle East
Reuters reported that gold prices dropped 1.8% on Friday, March 20, 2026, as the dollar gained after reports that the United States was sending additional troops to the Middle East, raising concerns over higher oil prices, inflation and interest rates.
Spot gold fell 1.8% to US$4,563.64 an ounce as of 2.14pm Eastern Time (1814 GMT), after rising 1% earlier in the session. US gold futures for April delivery slipped 0.7% to US$4,574.90.
The dollar and US Treasury yields continued to rise after a Reuters report, citing three US officials, said the American military was deploying several thousand more Marines and Navy personnel to the Middle East.
A stronger dollar makes gold, which is priced in the US currency, less attractive to holders of other currencies. The war involving the US and Israel against Iran has killed thousands of people, spread across the Middle East and hit the global economy since the two countries began joint attacks on February 28. A prolonged Iranian blockade of the Strait of Hormuz could drive oil prices higher and fuel inflation.
“Gold and silver are being dragged lower as the market faces the usual pre-weekend jitters,” said Tai Wong, an independent metals trader. He added: “Metals have been especially volatile after plunging sharply this week on fears of higher interest rates. They should stabilise soon, but it will be a volatile period.”
Gold is widely regarded as a hedge against inflation and uncertainty, but higher interest rates reduce the appeal of the non-yielding asset.
Major global brokerages see a strong likelihood that the European Central Bank and the Bank of England will raise interest rates, possibly as early as April. The US Federal Reserve kept interest rates unchanged on Wednesday and projected higher inflation, while Chair Jerome Powell said the central bank’s future policy path was unusually uncertain because of the war.
Spot silver fell 4.8% to US$69.39. Platinum dropped 0.9% to US$1,953.18, while palladium declined 1.6% to US$1,423.59. All three metals were on track to post weekly losses.
