AGE Daily Gold Update

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

3/16/2026: Gold slips under $5,000 an ounce

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold slipped 1.2% to close at $4,994 despite a weaker dollar as inflation expectations because of the Iran war undermined bets on rate cuts from the Fed. Silver shed 0.8% to finish at $80.26 an ounce.

The dollar fell 0.6% against major rivals, in part on profit-taking after reaching a 10-month high last Friday, in part on falling oil prices because of hopes for a reopening on the Strait of Hormuz.

Typically, a weaker dollar provides a boost to gold and other commodities by making them less expensive in other currencies, lifting demand overseas. But the US war on Iran has created atypical market conditions.

Oil prices retreated 5% today after President Trump called on allies to help the US reopen the Straits, potentially allowing 20% of the world's oil production to reenter the market. Gold often trades in sympathy with gold as a hedge against energy-related inflation.

But oil prices have risen 16% so far this year, with most of the increase coming in past three weeks because of the Middle East war. More inflation is expected as the war drags on.

Fed funds futures traders were pricing-in 65 basis points in cuts this year, beginning in June. But that was before the US attacked Iran. Now projections are for just 24 basis points, with odds growing that the next move will be a rate hike. The Fed is universally expected to leave rates unchanged when it meets this week.

Gold thrives in lower interest rate environments because it offers no yield. But it is also seen as a hedge against geopolitical uncertainty and loss of purchasing power through inflation, both of which have helped it to gain 16% this year.

Platinum and palladium both fell 1.2%

At the New York spot close: gold fell $58.50 to $4,995; silver slid 65 cents to $80.26; platinum picked up $42.95 to $2,089.50; and palladium rose $32.90 to $1,610.75 an ounce.