During the opening trading session on 16/3, the spot global gold price dropped more than $40, reaching $4,968 per ounce. The price has since recovered to $5,020.

Global gold prices saw continuous fluctuations during the morning trading session on 16/3. Chart: Kitco

The market has declined for two consecutive weeks. High energy prices and inflation fears, stemming from the Middle East conflict, have dampened investor expectations that the US Federal Reserve (Fed) and other central banks will cut interest rates. Higher interest rates diminish gold's appeal, as the precious metal offers no fixed yield.

A Kitco survey conducted last weekend among analysts and bank directors regarding this week's outlook yielded mixed results. 40% predicted a rise in gold prices, 40% anticipated a decline, while the remaining experts expected the metal to trade sideways.

In the crude oil market, prices continued their upward trend. The Middle East conflict entered its third week, threatening the region's energy infrastructure. The paralysis of the Hormuz Strait has also caused the largest global energy supply disruption to date.

Brent crude oil rose 1,95% to $105 per barrel. US crude oil increased 1,6% to $100 per barrel. Both types of oil have seen an increase of over 40% since the beginning of the month, reaching their highest levels since 2022.

Last weekend, US President Donald Trump threatened more intense attacks on Kharg Island, following previous military strikes there. This island handles approximately 90% of Iran's oil exports.

Immediately afterward, an Iranian unmanned aerial vehicle struck the UAE's Fujairah oil port, forcing a partial halt to operations. Reuters sources confirmed that oil loading has since resumed.

The International Energy Agency (IEA) on 15/3 also released further details on its plan to release 400 million barrels of crude oil from reserves. According to the plan, oil from Asian and Oceanian countries will be sold immediately, while oil from Europe and the Americas will be released by the end of March.

By Ha Thu, Reuters, Kitco