Iran Hardens Stance, Pushing Gold Past $5,000
Geopolitical tensions in the Middle East intensified on March 17 after Iranian Parliament Speaker Mohammad Bagher Ghalibaf declared that Iran would no longer accept a cycle of "war-truce-negotiation." In an interview, Ghalibaf stated Iran would deliver a "decisive response" to any threats and claimed its missile systems had been improved, making them difficult to target. The hardline rhetoric injected fresh uncertainty into markets, prompting a flight to safety. Spot gold firmed 0.1% to $5,007.61 per ounce, while US gold futures for April delivery climbed 0.2% to $5,011.70.
Dollar Strength Weighed on Earlier Gold Performance
The recent rebound in gold marks a reversal from the previous two weeks. Despite escalating military exchanges and crude oil prices breaking the $100 mark, gold prices had initially slipped. This counterintuitive price action was driven by several factors. A strong US dollar, a traditional safe-haven itself, weighed on the dollar-denominated metal, with the Indian rupee hitting a fresh all-time low of 92.3475 against the greenback. Furthermore, some investors liquidated gold holdings to cover margin calls in other asset classes, while others booked profits following gold's strong rally in 2025.
Stagflation Fears Mount as Oil Prices Add Pressure
The conflict's economic impact extends well beyond precious metals, raising concerns of a stagflationary environment. The surge in WTI crude, which briefly shot past $119 per barrel, is applying inflationary pressure just as the US economy shows signs of weakness, having expanded by only 0.7% in the fourth quarter of 2025. This dynamic has hit equity markets, with the S&P 500 breaking below its 6,800 support level. The airline industry has been particularly affected, with American Airlines (AAL) stock falling 25.75% as investors weigh the dual impact of higher fuel costs and potential declines in travel demand.
Edgen Stock·Mar 17 2026, 07:05