Gold prices moved sharply higher on March 10 as investors weighed geopolitical risks in the Middle East against expectations for U.S. inflation and interest rates.
Rather than being held back by a stronger dollar, the precious metal benefited from a softer U.S. currency during the session. Reuters reported that spot gold rose nearly 2% to $5,231.79 per ounce, while U.S. gold futures settled 2.7% higher at $5,242.10.
The rebound came as financial markets continued to monitor the war involving Iran and the possibility of wider disruption in energy markets. Concern over regional instability has kept investors focused on the Strait of Hormuz, one of the world’s most important oil shipping routes. The U.S. Energy Information Administration says oil flows through the strait averaged 20 million barrels per day in 2024, equal to about 20% of global petroleum liquids consumption.
At the same time, market sentiment appeared to improve after oil prices pulled back from earlier gains, easing some fears of an immediate inflation shock. That helped support gold, which often benefits when the dollar weakens and investors look for safe-haven assets during periods of uncertainty.
Investors are now closely watching upcoming U.S. inflation figures for further clues on Federal Reserve policy. The February Consumer Price Index was scheduled for release on March 11, while the next Personal Consumption Expenditures price index report was due on March 13. Those reports are expected to play an important role in shaping expectations for future interest rate cuts.
The market reaction suggests that, for now, gold remains supported by a combination of geopolitical uncertainty and monetary policy expectations. Even so, the direction of the precious metal in the coming days is likely to remain closely tied to developments in the Middle East, oil prices, the U.S. dollar and inflation data.