Gold Prices Stabilize as US Dollar Weakens

Key Figures:

• $5,135.14: Spot gold price as of 4:25 p.m. in New York
• -0.7%: Daily decline in spot gold price
• $90: Oil price below which it fell

Market Update

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The US dollar 0.2% decline has helped gold recover some of its earlier losses, with the precious metal stabilizing as the global market continues to grapple with the Iran conflict. The war in the Middle East has entered its 10th day, with Tehran picking a new supreme leader and maintaining attacks in the Persian Gulf region.

Trade Impact

The conflict has driven up energy prices, with oil falling below $90 a barrel, and natural gas prices rising. The geopolitical uncertainty has fueled concerns of rising inflation, which has been a key driver of gold's price increase.

Central Bank Activity

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

The People's Bank of China has continued its gold purchasing streak, buying more gold in February and extending its streak to 16 months. Elevated central-bank buying has also supported growth in the gold market.

Commodity Prices

• $86.42: Silver price, up 2.2%
• Platinum and palladium prices also advanced

Index Performance

• Bloomberg Dollar Spot Index: down 0.1%, after adding 1.3% last week