A one-kilogram gold bar and a sealed gold coin are displayed at a jewellery store, in Dubai, United Arab Emirates | Photo Credit: Amr Alfiky

Gold prices remained steady on a volatile Monday. While a weaker US dollar supported the metal, a sharp jump in energy prices sparked inflation fears. This has further reduced the chances of the US Federal Reserve cutting interest rates in 2026.

Here is a breakdown of the current market situation:

Weak US Dollar: The dollar eased slightly, making gold cheaper for buyers using other currencies (like the Indian Rupee).

Crude Oil Surge: Brent crude jumped above $115 per barrel following Houthi attacks on Israel. Oil prices have risen by a record 60% in March alone.

Inflation vs. Interest Rates: While gold is usually a “safe haven” during high inflation, it faces pressure when interest rates remain high. Since high energy prices keep inflation up, the US Fed is unlikely to cut rates soon.

Geopolitical Tension: Ongoing conflicts involving Israel, Iran, and Yemen are causing massive swings (volatility) in global markets.

Expert Insight

Nicholas Frappell from ABC Refinery noted that gold showed signs of recovery last week after a three-week losing streak. However, he warned that the market remains unpredictable due to “rapidly changing headlines” and shifting interest rate expectations.

Historical Context

Gold has struggled this month, falling over 15%—its worst monthly performance since 2008. This decline is largely due to the US dollar strengthening by over 2% since the conflict began on February 28.

(With inputs from Reuters)

Published on March 30, 2026