AGE Daily Gold Update

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

3/12/2026: Gold slips on oil, dollar

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold slipped 1% to close under $5,116 as the escalating Iran war stoked fears of an energy crisis, lifting Treasury yields and the dollar on expectations that higher inflation will prevent the Fed from reducing interest rates. Silver slipped 0.5% to finish at $84.67 an ounce.

After Iran set two tankers ablaze in the Strait of Hormuz, the new Ayatollah Mojtabi Khamenei, hardliner son of the assassinated Supreme Leader, said he will keep the Strait closed to avenge the attacks on his country. He reiterated that the world should prepare for oil at $200 per barrel.

Around 20% of global oil production flows through the Strait, which is reportedly being mined by Iran, something that is easy to do and hard to prevent. US benchmark WTI crude surged 10% to more than $96 while global benchmark Brent crude surpassed $101 per barrel.

Goldman Sachs warned today that oil prices could exceed the 2008 peak, when Brent rallied to $147.50, if the Strait of Hormuz is not reopened.

Bond traders are no longer pricing-in any rate cuts this year because of higher inflation expectation fuel by rising oil prices and the Iran war. The Bank of England and the ECB are now expected to raise interest rates later this year rather than cutting them, as had been previously projected.

Benchmark 10-year Treasury yields rose on the hawkish rate view, pressuring gold by increasing the opportunity cost for holding it instead of bonds for safety.

The dollar added 0.5% against major rivals on flights to safety and expectations that interest rates will remain high. A stronger dollar weighs on gold and other commodities by making them pricier overseas.

At the New York spot close: gold fell $51.60 to $5,115.80; silver slid 40 cents to $84.67; platinum dropped $31 io $2m152.05; and palladium retreated by $17.70 to $1,634.25 an ounce.