- Iran sets giant oil tanker ablaze off Dubai after Trump warnings
- Goldman still sees gold reaching $5,400 per ounce by end of 2026
- Silver, platinum, palladium head for monthly declines
March 31 (Reuters) - Gold rose on Tuesday, but remained on track for its steepest monthly decline since October 2008, as persistent inflation worries and expectations of higher interest rates due to the impact of the Iran war weighed on the non-yielding metal.
Spot gold was up 1.4% to $4,572.89 per ounce by 8:50 a.m. EDT (1250 GMT), after hitting its highest price since March 20 earlier in the session. U.S. gold futures gained 0.7% to $4,588.
The U.S. dollar eased, but remained on course for a monthly gain. A stronger dollar makes greenback‑priced bullion more expensive for holders of other currencies.
"The current rally in gold is encouraging, but I need to see more upside performance for it to be a continuation pattern. If anything happens that increases the likelihood of a Federal Reserve rate hike, then we could see downside in prices," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
"In the long term, the underlying trend remains bullish, and key fundamental supports such as de‑dollarization and central bank buying are still in place."
The price of gold is down 13.3% in March, as higher oil prices triggered by the war in the Middle East weigh on bullion. The energy price surge has intensified inflation concerns and prompted markets to reassess interest rate expectations. Despite being a hedge against uncertainty and inflation, high rates raise the opportunity cost of holding the metal.
BMI kept its 2026 gold forecast at an annual average of $4,600, while Goldman Sachs continues to forecast the gold price reaching $5,400 by the end of 2026.
Iran attacked and set ablaze a fully loaded crude oil tanker off Dubai, despite a threat by President Donald Trump that the U.S. will obliterate Iranian energy plants if Tehran does not agree to a peace deal and open the Strait of Hormuz.
Spot silver rose 4.1% to $72.82, but was down 22.4% for the month.
Analysts at BNP Paribas see silver trading in a range of $65 to $75 per ounce through 2026 and expect the physical market to shift into surplus by 2027.
Platinum gained 0.7% to $1,911.86 an ounce, and palladium rose 2.8% to $1,445.74. Both metals were on track for monthly declines.
Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Paul Simao
Source: Reuters