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GOLD DIPS AS DOLLAR STRENGTH AND MIDDLE EAST TURMOIL RESHAPE MARKETS

Published on Mar 09, 2026 15:02

Gold prices tumbled below $5,100 per ounce, weighed down by a resurgent U.S. dollar and diminishing prospects of imminent Federal Reserve rate cuts, even as the escalating Middle East conflict stoked safe-haven demand. Crude oil, in stark contrast, surged past $115 per barrel�its loftiest level since 2022�on mounting fears of supply disruptions through the Strait of Hormuz, compelling major producers including Kuwait, Iraq, and the UAE to pare output. The turmoil has already imperilled nearly a fifth of global crude and natural gas supplies, amplifying concerns over prolonged energy market volatility and rekindling inflationary anxieties worldwide. The U.S. dollar index breached 99.5, a three-month peak, underscoring investor caution amid geopolitical uncertainty. In India, MCX bullion futures for April delivery retreated 0.4% to Rs 161,010 per 10 grams, descending from recent peaks near Rs 170,000, as the twin forces of soaring oil prices and a firmer greenback exerted pronounced pressure on domestic commodities.

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