Updated Mon, March 16, 2026 at 10:48 AM EDT 1 min read
Gold prices remained in negative territory on Monday afternoon but managed to climb back above the $5,000 level after opening lower. This movement came amid reduced expectations for near-term US interest rate cuts, influenced by rising energy costs.
Gold futures (GC=F) declined by 0.5% to $5,035.50 per troy ounce, while spot prices recovered to $5,019.10 at the time of writing.
ANZ analysts noted, "Gold has struggled as it is being overshadowed by a stronger USD, rising yields and uncertainty surrounding Federal Reserve policy."
Read more: Should you invest in gold?
Rising crude oil prices contribute to inflation by increasing transportation and production costs. While gold (GC=F) is traditionally viewed as an inflation hedge, higher interest rates make yield-bearing assets more attractive, diminishing gold's appeal.
Christopher Wong, a strategist at OCBC, commented, "In the near term, [gold's] price action may remain choppy as markets reassess the Fed policy path and the trajectory of real yields."
The Federal Reserve is widely expected to maintain interest rates in the 3.5-3.75% range for a second consecutive meeting on Wednesday.
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