Gold steady as softer dollar offsets fading Fed rate-cut hopes

Published Mon, Mar 30, 2026 · 01:37 PM

GOLD prices held steady on a volatile Monday session, with a softer dollar meeting a surge in energy prices that fuelled inflation worries and further dimmed expectations for US Federal Reserve interest rate cuts this year.

Spot gold edged lower 0.1 per cent to US$4,488.46 per ounce as of 0431 GMT after having swung between a more than 1 per cent fall and a marginal gain earlier. US gold futures for April delivery lost 0.1 per cent to US$4,518.30.

The US dollar eased, making dollar-denominated commodities more affordable for holders of other currencies. “Gold’s price action last week (when it snapped a three-week losing streak) suggested a reaction to oversold behaviour, and a possible reversal of recent declines.

However, this needs to be confirmed by price action this week. Given the rapid flow of headline news, it’s easiest to expect volatility,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.

Brent crude rallied above US$115 a barrel after Yemeni Houthis launched attacks on Israel over the weekend, widening the ongoing war and adding to inflation woes.

The contract is up 60 per cent so far in March, a record monthly rise.

US President Donald Trump said the US and Iran have been meeting “directly and indirectly” and that Iran’s new leaders have been “very reasonable”, as more US troops arrived in the region and Teheran warned it will not accept humiliation.

Traders see little chance of a US rate cut this year, as higher energy prices threaten to feed into broader inflation and limit scope for monetary easing. That compares with expectations for two rate cuts before the conflict began.

While inflation typically boosts gold’s appeal as a hedge, elevated interest rates weigh on the non-yielding metal’s demand.

Gold has fallen more than 15 per cent so far this month, marking its steepest monthly decline since October 2008, pressured by the US dollar, which has gained more than 2 per cent since the US-Israeli war on Iran began on Feb 28.

“The bigger macro picture behind that underperformance is the huge shift in interest rate expectations… The USD has picked up on that,” said Frappell.

Spot silver rose 0.5 per cent to US$69.91 per ounce. Spot platinum gained 2.7 per cent to US$1,911.05 and palladium rose 2.9 per cent to US$1,416.60. REUTERS