At the close of trading for the week, the spot global gold price fell 60 USD to 5,017 USD per ounce. The market declined due to a strengthening dollar and inflation concerns stemming from the Middle East conflict. Overall for the week, gold prices decreased by more than 2%, marking their second consecutive weekly decline.

"Although the market remains optimistic about gold prices in the long term, this precious metal has fallen to its lowest level since the conflict began, amid the dollar reaching a four-month high," said Tai Wong, an independent metals trader.

Global gold price currently nearing 5,000 USD per ounce. Chart: Kitco

The Dollar Index closed the week up nearly 0.8% at 100.5 points. A stronger USD makes gold more expensive for buyers using other currencies.

In a report, Commerzbank stated that expectations of tighter monetary policy are the main reason for the recent decline in gold prices. Although gold is a traditional hedge against inflation, rising interest rates reduce the precious metal's appeal.

The latest data showed that the US consumer price index (cpi) rose slightly in January. The conflict in the Middle East further led investors to predict that the US Federal Reserve (Fed) would not cut interest rates soon.

Besides gold, other precious metals also lost value. Silver decreased by 3.3% to 81 USD per ounce. Platinum and palladium fell by 4% and 2.5% respectively.

In the crude oil market, prices continued to rise as the Strait of Hormuz remained closed. At the close of trading on 13/3, Brent oil price increased by nearly 3% to 103 USD per barrel. US WTI crude oil rose by more than 3% to 98.7 USD.

Earlier in the session, prices declined following news that an Indian-flagged oil tanker had passed through Hormuz, a critical global oil and gas shipping lane. However, this information was later refuted, causing oil prices to rebound from midday.

Overall for the week, Brent oil increased by more than 11%, while WTI rose by 8%. Analysts remain cautious as unexpected developments related to the conflict could emerge over the weekend.

On 13/3, Goldman Sachs bank forecasted that Brent oil price in March would average 100 USD and fall to 85 USD in April. Energy prices will remain volatile due to the conflict in the Middle East, damage to energy infrastructure in the region, and disruptions in the Strait of Hormuz.

Ha Thu (according to Reuters, Kitco)