EasyMarkets易信: Gold Price Firmly Holds $5,000 Mark

On Tuesday, March 17, during Asian morning trading, international gold prices remained steadily above key levels. EasyMarkets reports that the current market focus continues to revolve around oil price movements, the progress of the US-Israel-Iran conflict, and multiple central bank meetings this week. These factors collectively dominate recent gold price fluctuations. EasyMarkets notes that on the previous trading day, gold briefly fell below the critical $5,000 per ounce level but then recovered as oil prices declined, easing inflation concerns and supporting the market.

On Monday, a weakening dollar also helped boost gold prices. EasyMarkets explains that after two weeks of strong gains, the dollar experienced a correction, falling 0.5% that day. A weaker dollar generally increases gold’s appeal as a non-dollar asset, indirectly supporting a stabilization and rebound in gold prices. Meanwhile, oil prices plunged sharply on Monday, partly due to profit-taking and partly because reports indicated several ships successfully passed through the Strait of Hormuz, easing fears of energy supply disruptions. This alleviated inflation pressures caused by the Iran conflict and created favorable conditions for gold to rebound. Notably, since the outbreak of the Iran conflict, gold’s safe-haven properties have not been fully reflected, and its overall performance has fallen short of market expectations. The main reason is that inflation fears triggered by the war have heightened expectations that major central banks will maintain high interest rates, which largely offset gold’s safe-haven demand.

This week, global financial markets will enter a period of intensive central bank policy meetings, which are key variables influencing gold prices. The Reserve Bank of Australia is scheduled to hold a monetary policy meeting on Tuesday, followed by the Federal Reserve and the Bank of Canada on the next day. The Bank of Japan, Swiss National Bank, Bank of England, and European Central Bank will announce their rate decisions on the same day. EasyMarkets states that markets are generally concerned that if inflationary pressures from the Iran conflict persist, major central banks may adopt more hawkish policies, keeping interest rates high for an extended period, which would continue to pressure gold prices. Conversely, if central banks signal dovish stances, it could provide upward momentum for gold.

EasyMarkets believes that in the short term, gold prices will continue to fluctuate around the $5,000 per ounce level. The progress of the Iran conflict, oil price trends, and central bank policy decisions will be the core factors affecting gold. Investors should pay close attention to this week’s rate decisions and policy statements from central banks, as well as monitor developments in Iran and oil price movements to manage investment risks effectively. Although current safe-haven demand for gold is somewhat offset by inflation concerns, its long-term value as a core safe-haven asset remains unchanged. If geopolitical tensions escalate further or central banks shift toward easing policies, gold prices could see a new upward trend.