Gold Slides Amid Hawkish Fed and Strong Dollar

Gold prices continue to weaken despite US-Israel-Iran tensions, as a hawkish Fed and strong US dollar override its traditional role as a geopolitical hedge.

Sun Mar 22 2026

Gold Prices Continue to Decline Despite Geopolitical Tensions

Gold prices have continued to weaken despite escalating tensions in the US-Israel conflict with Iran. Analysts state that the metal has broken from its traditional role as a geopolitical hedge, as fading expectations of interest rate cuts and a stronger US dollar weigh on sentiment.

Hawkish Fed and Strong US Dollar Impact

The metal has declined about 15% since a brief surge on March 2, when prices climbed to around US$5,300 per ounce following US and Israeli strikes on Iran. This downward trend is attributed to diminished expectations of interest rate cuts and the sustained strength of the US dollar, which are exerting pressure on gold prices. A modest rebound driven by technical buying on Friday did not alter the overall bearish sentiment.

*Source: SCMP China (2026-03-22)*

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