Gold slides as Fed hawkishness and strong dollar outweigh Middle East tensions
Mar 22nd 2026 ยท United States
Gold has weakened about 15% from a March spike to near $4,500 an ounce as the Fed delays rate cuts and a stronger US dollar offsets safe-haven buying amid US-Israel-Iran tensions.
- Gold is down about 15% from a March 2 spike near $5,300 to around $4,500 an ounce.
- The Federal Reserve held its benchmark rate at 3.50 to 3.75 percent and signalled delayed rate cuts while projecting higher inflation.
- The US dollar has strengthened, rising more than 2 percent this month, adding pressure to non-yielding gold.
- Rising oil prices did not sustain gold gains because a hawkish central bank outlook offset inflationary effects.
- Escalating US and Israeli strikes on Iran briefly lifted safe-haven demand but did not reverse the broader downtrend.