Gold Prices Remain Under Pressure Despite Trump Delaying Iran Strike
Gold prices trimmed earlier losses at the start of the week after former U.S. President Donald Trump postponed a planned attack on Iran’s energy infrastructure. However, the precious metal continues to face downward pressure amid expectations of prolonged high interest rates.
On Monday (March 23, 2026), spot gold prices fell 1.8% to US$4,407.06 per ounce, after previously plunging more than 8% to hit a four-month low. On a weekly basis, gold recorded its worst performance since 1983. Meanwhile, U.S. gold futures settled 3.7% lower at US$4,407.30 per ounce.
Market participants attribute the decline to continued selling pressure driven by expectations that interest rates will remain elevated. Higher rates tend to reduce the appeal of non-yielding assets like gold.
Trump had earlier announced a five-day delay in a potential strike on Iran’s power facilities, opening the door for possible negotiations to ease tensions between the U.S., Israel, and Iran. However, Iranian officials denied that any such talks were taking place.
The announcement triggered broad movements across global markets. Oil prices dropped sharply, while the U.S. dollar weakened. A softer dollar typically supports gold prices by making the metal more affordable for holders of other currencies, helping gold recover slightly from its lows.
Despite its status as a safe-haven asset against inflation and geopolitical uncertainty, gold has struggled in recent weeks. Rising energy prices linked to tensions in the Middle East have reinforced expectations of higher interest rates for longer, increasing the opportunity cost of holding gold.
Since geopolitical tensions escalated on February 28, gold prices have declined by more than 15%. From its record high of US$5,594.82 in late January, gold has corrected by around 20%.
In other precious metals markets, silver prices rose 2.5% to US$69.47 per ounce. Platinum fell 2.7% to US$1,868.95, while palladium gained 1.7% to US$1.426.77 per ounce.
Global palladium producer Nornickel forecasts that demand from China’s fiberglass industry could reach 0.8 million ounces annually in the medium term, supporting long-term market prospects.