Gold Prices Slightly Up, Energy Price Surge Dampens Hope for Interest Rate Cuts

Global gold prices edged higher on Monday (30/3/2026), supported by buying activity during price dips (dip-buying).

However, this gain was restrained by a surge in energy prices, sparking inflation concerns and dimming the prospects of interest rate cuts by the U.S. Federal Reserve this year.

As of 07:55 GMT, spot gold prices increased by 0.8% to US$4,526.67 per ounce, after falling 1% earlier in the session. Meanwhile, U.S. April gold futures rose 0.7% to US$4,554 per ounce.

Gold price movements are expected to remain volatile in the near term, amid strong global market sentiment.

Nicholas Frappell, Global Head of Institutional Markets at ABC Refinery, noted that last week’s gold movement, which broke a three-week downtrend, indicates a potential reversal. “However, further confirmation is needed from this week’s price action,” he said.

On the other hand, the surge in energy prices is a factor restraining gold’s gains. Brent crude oil prices jumped above US$$115 per barrel after the Yemen Houthi group’s attack on Israel over the weekend, expanding regional conflict.

Throughout March, Brent prices surged approximately 60%, marking the largest monthly increase in history.

This energy price increase is heightening global inflation pressures, ultimately reducing the Federal Reserve’s room to ease monetary policy.

Market participants now see a smaller chance of interest rate cuts this year, contrary to previous expectations of two rate reductions before the conflict escalated.

In theory, high inflation usually boosts gold’s appeal as a safe-haven asset. However, persistently high interest rates are a burden for gold, as this precious metal does not yield interest.

Markets are now awaiting statements from Fed Chair Jerome Powell at Harvard and comments from New York Fed President John Williams, which are expected to provide clues about the future monetary policy direction.

This month, gold prices have fallen more than 14%, marking the deepest monthly decline since October 2008.

Pressure also comes from the strengthening U.S. dollar, which has risen over 2% since the U.S.-Israel conflict with Iran erupted on February 28. Nonetheless, on a quarterly basis, gold still recorded a gain of about 5%.

Frappell emphasized that recent gold weakness is partly due to significant changes in global interest rate expectations, which have also supported the U.S. dollar.

Meanwhile, other precious metals also gained. Spot silver rose 1.2% to US$70.43 per ounce, platinum jumped 2.8% to US$1,914.55, and palladium increased 3.4% to US$1,423.77 per ounce.