Updated Mon, March 16, 2026 at 10:48 AM EDT 1 min read
Gold prices remained slightly lower on Monday afternoon but managed to climb back above the $5,000 level after opening the session lower. This movement came amid fading expectations of near-term US interest rate cuts, influenced by rising energy costs.
Gold futures (GC=F) declined 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. Although gold (GC=F) is traditionally viewed as an inflation hedge, higher interest rates make yield-bearing assets more attractive, which reduces bullion’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 keep interest rates steady in the 3.5-3.75% range for a second consecutive meeting on Wednesday.
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