AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

3/3/2026: Gold falls on flights to cash

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold fell 3.5% to close under $5,108 as the dollar rose sharply on flights to cash and expectations that a protracted war against Iran will drive higher global inflation. Silver shed 6% to finish at $82.92 an ounce.

As the US-led war against Iran entered its fourth day with no sign of an early end, traders sought liquidity to cover losses in equities and other investments, reaping profits from gold's 20% rise so far this year.

Oil prices continued to advance, with US benchmark WTI crude rising 9% in the past two days after Iran struck neighboring production facilities and reportedly closed Strait of Hormuz, through which around 20% of the world's oil consumption passes.

US and European stocks continued to fall while US Treasury yields rose on expectations that a protracted war in the Middle East will be strongly inflationary, reducing the likelihood that major central banks, including the Fed, will be able to reduce interest rates.

Extending yesterday's 1% rise, the dollar added another 0.6% on flights to safety and liquidity, pressuring gold and other commodities by making them more expensive on other currencies.

While the buck's role as a safe-haven currency took a beating last year because of erratic US trade and fiscal policies, the events of the past few days have given it a second wind. As a net exporter of energy, the US economy is better-positioned to withstand an inflationary oil shock than its peers, who are net-importers, making the dollar a relatively safer bet.

Platinum and palladium fell9.3% and 7.2%, respectively.

At the New York spot close: gold fell $187 to $5,107.40; silver slid $5.36 to $82.92; platinum dropped $216.10 to $2,096.55; and palladium lost $127.55 to $1,635 an ounce.