Gold steadies after six-day decline as Fed warns on inflation

Published Thu, Mar 19, 2026 · 09:18 AM

[SINGAPORE] Gold steadied after tumbling nearly 4 per cent in the previous session, as the US Federal Reserve warned that the Middle East war and surging energy prices could stoke inflation.

Bullion held near US$4,835 an ounce in early trading, following its sixth straight daily decline, the longest losing streak since late 2024. The Fed held interest rates steady at its latest meeting on Wednesday (Mar 18) and projected one cut this year, but chair Jerome Powell said a reduction would require progress in slowing inflation. The conflict makes developments for the US economy “uncertain”, Fed officials said.

Oil advanced after Iran and Israel traded strikes on some of the most important energy facilities in the Persian Gulf region. Nearly three weeks into the war, the spike in energy prices is raising inflationary risks, which make rate cuts by the Fed and other central banks less likely. This is a headwind for gold, which does not pay interest.

Bullion is still up around 12 per cent so far this year, but upward momentum has stalled in recent weeks as prospects for a near-term rate cut have faded and some investors sold the metal to meet margin calls elsewhere in their portfolios. Bullion hit an all-time high above US$5,595 an ounce in late January.

On Wednesday, Powell also made rare statements about his future at the Fed in the wake of an investigation by the Department of Justice (DOJ). He said that he had no intention of resigning as a governor until the probe is complete.

If a successor is not confirmed before his term as chair ends in May, Powell said that he would serve as chair pro tempore, a temporary designation previously conferred by the Fed when the role of chair was vacant. The DOJ investigation has raised concerns about political intervention into the Fed, eroded trust in US assets and supported gold.

Spot gold rose 0.4 per cent to US$4,835.55 an ounce at 7.07 am in Singapore. Silver climbed 0.7 per cent to US$75.87. Platinum and palladium also advanced. The Bloomberg Dollar Spot Index added 0.1 per cent after ending the previous session up 0.5 per cent. BLOOMBERG