Key Moments
- Spot gold climbed 1.8% to $4,593.12 per ounce, reaching its highest level since March 20.
- Despite the rebound, gold has fallen more than 13% this month and remains on course for its sharpest monthly decline since October 2008.
- Goldman Sachs maintained a year-end 2026 price target of $5,400 per troy ounce, expecting two U.S. rate cuts this year.
Gold Prices Recover Intraday but Monthly Damage Remains Severe
Gold prices advanced on Tuesday, even as the metal remained headed for its steepest monthly setback in nearly 20 years. Investors contended with diminished expectations for interest rate cuts, sharply higher energy prices, and a stronger U.S. dollar amid the ongoing Iran war, all of which weighed on bullion demand.
Spot gold rose 1.8% to $4,593.12 per ounce by 1208 GMT, marking its highest level since March 20. U.S. gold futures for April delivery gained 1.2% to $4,610.
Despite Tuesday’s gains, bullion has dropped more than 13% so far this month, putting it on pace for its most severe monthly loss since October 2008. Even so, the metal remains up more than 6% for the quarter after reaching a record high of $5,594.82 on January 29.
Analyst View: Limited Rebound Amid Geopolitical and Policy Uncertainty
“You could probably describe the recovery that we’re seeing in gold as something of a dead cat bounce, which is to say not much of a bounce at all,” said independent analyst Ross Norman.
“If indeed (U.S. President) Donald Trump is able to exit himself from what could become a very protracted event, then we could see oil and the dollar coming off, which would be gold positive. But we’re not in that position yet.”
Geopolitical Escalation and Dollar Strength Pressure Bullion
Geopolitical tensions intensified after Iran attacked and set ablaze a fully loaded crude oil tanker off Dubai early Tuesday. The move followed a warning from Donald Trump that the United States would destroy Iran’s energy facilities and oil wells if it does not open the Strait of Hormuz.
The U.S. dollar was on track for its largest monthly rise since July, making dollar-denominated gold more expensive for buyers using other currencies. The month-long Middle-East war has already pushed oil prices higher, increasing concerns about a potential global recession.
Gold, widely used as a hedge against inflation and geopolitical turmoil, has fallen more than 14% since the U.S.-Israeli war on Iran began on February 28. The metal has been pressured by rising expectations for a more hawkish monetary policy outlook, which diminishes the appeal of non-yielding assets such as bullion.
Rate Expectations and Strategic Forecasts
Money market pricing has shifted sharply during the conflict. According to CME Group’s FedWatch Tool, traders have almost entirely removed the possibility of a U.S. interest rate cut this year, compared with expectations for about two cuts before the war began.
In contrast, Goldman Sachs reiterated a constructive long-term view on gold, stating that it continues to expect prices to reach $5,400 per troy ounce by the end of 2026, based on its forecast for two U.S. rate cuts this year.
Broader Precious Metals Complex Under Pressure
Other precious metals also moved higher on the day but remained significantly lower for the month.
| Metal | Spot Price | Intraday Move | Performance so far in March |
|---|---|---|---|
| Gold | $4,593.12 per ounce | +1.8% | Down more than 13% |
| Silver | $73.39 per ounce | +4.9% | Down about 20% |
| Platinum | $1,920.68 per ounce | +1.1% | Down about 20% |
| Palladium | $1,471.07 per ounce | +4.6% | Down about 20% |
Spot silver rose 4.9% to $73.39 per ounce. Spot platinum gained 1.1% to $1,920.68, while palladium advanced 4.6% to $1,471.07. Despite Tuesday’s strength, all three metals were down about 20% each so far in March.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
