Singapore / New York — March 16, 2026
Global precious metal prices showed mixed movement on Monday as geopolitical tensions in West Asia entered their third week, influencing investor sentiment and financial markets.
During early Asian trading, spot gold fell more than 1%, slipping below the $5,000 level. The metal touched an intraday low of $4,971.30 per ounce before stabilizing slightly.
Meanwhile, spot silver also declined sharply, dropping 2.23% to around $79.5 per ounce, reflecting broader volatility in commodity markets.
Energy Prices and Inflation Concerns Affect Market Sentiment
The pressure on precious metals comes as global markets react to rising energy prices and concerns about persistent inflation.
Recent developments in the Middle East conflict have pushed crude oil prices higher, increasing worries that inflation could remain elevated for longer than previously expected.
Higher energy prices often influence broader inflation expectations, which in turn affect central bank policies and investor behavior in financial markets.
Oil Price Surge Adds to Market Uncertainty
Oil prices climbed after the United States reportedly targeted a key Iranian oil export hub during recent military operations.
Iran later responded with retaliatory strikes on energy infrastructure in several Gulf countries, escalating uncertainty across the region.
The geopolitical tensions have increased volatility in global markets, particularly in commodities such as oil, gold, and silver.
Uncertainty Over Length of Conflict
Analysts say the lack of clarity regarding the duration of the conflict is contributing to market uncertainty.
According to a report by Bloomberg, a close associate of Donald Trump suggested the conflict could last four to six weeks, although signals from both sides remain mixed.
Trump recently indicated that Iran might be interested in reaching an agreement but said the United States was seeking stronger conditions for any potential deal.
Iranian officials, however, have stated that they have not requested negotiations or a ceasefire.
Rate Cut Expectations Continue to Weaken
Expectations for interest rate cuts from the Federal Reserve and other major central banks have also weakened.
Recent U.S. economic data released Friday showed that consumer spending in January rose only modestly, indicating slower economic momentum even before the current geopolitical tensions intensified.
At the same time, rising gasoline prices have pushed U.S. consumer sentiment to its lowest level in three months, reflecting growing concerns among households.
Markets Remain Volatile
Financial analysts note that the combined impact of geopolitical risks, inflation concerns, and uncertain monetary policy is likely to keep global markets volatile in the near term.
Investors are expected to closely monitor developments in the Middle East, movements in energy prices, and upcoming economic data for further direction.
