Gold set for second weekly decline as oil prices rally further
Bullion has still gained around 18% so far this year and has largely held above the US$5,000-an-ounce threshold
Published Fri, Mar 13, 2026 · 09:52 AM
GOLD was headed for a second weekly decline as the US dollar strengthened and the ongoing war in the Middle East forced oil prices higher.
Bullion edged above US$5,100 an ounce on Friday (Mar 13) as dip-buyers entered the market, but remained on track for a weekly drop of more than 1 per cent. US President Donald Trump and Iran’s new supreme leader, Mojtaba Khamenei, struck defiant tones on the 13th day of a conflict that has effectively blocked shipping through the Strait of Hormuz. Crude extended gains from its highest close since August 2022, while a gauge of the dollar has risen 0.4 per cent this week.
For gold, higher energy prices and rising inflationary concerns have greatly reduced expectations that the US Federal Reserve and other central banks will cut interest rates. The latest US jobless report, which showed new claims remained subdued, also lessened the chance of borrowing costs being lowered
US Treasuries slumped on Thursday, sending short-term yields to their highest since August, and traders now see virtually no chance of a rate cut at next week’s Fed meeting and only a 70 per cent chance of a reduction this year. Higher borrowing costs are typically a negative for precious metals, which do not pay interest.
The ongoing US-Israeli conflict with Iran has sucked momentum from a prolonged rally in gold, with trading choppy over the last two weeks as investors sold the metal to cover margin calls in other parts of their portfolios. Bullion has still gained around 18 per cent so far this year and has largely held above the US$5,000-an-ounce threshold.
A prolonged conflict – and persistently high crude prices – would add pressure to the metal. The International Energy Agency said on Thursday that the war is creating the biggest supply disruption in the history of the global oil market, a day after its members agreed to release a record 400 million barrels from emergency reserves.
Spot gold edged up 0.4 per cent to US$5,099.98 an ounce as at 8.05 am in Singapore. Silver rose 0.4 per cent to US$84.18. Platinum and palladium also advanced. The Bloomberg Dollar Spot Index slipped 0.1 per cent after ending the previous session up 0.5 per cent. BLOOMBERG
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