EL7.AI
CommoditiesMediumUpdated×11•Originally published 31 March 2026•Updated 2 April 2026•
1 min read

Gold Faces Pressure as Oil Shock Boosts Inflation and Fed Hawkishness

Key Facts

1Gold, silver, and platinum prices rallied following statements from Tehran regarding ending the conflict.
2Oil prices retreated as the geopolitical risk premium decreased.
3The Iranian President stated he is ready to end the war, leading to notable movements in commodity markets.

Gold prices slid by over 2% following Donald Trump's decision to extend military operations in Iran, which bolstered demand for the US Dollar. This intraday decline intensifies the selling pressure seen in March, where gold fell by more than 13% amid expanding regional conflict and market volatility. Gains in the US Dollar Index (USDX) and rising bond yields continue to weigh on precious metals, as an oil shock drives inflation expectations higher. These factors are pushing the Federal Reserve (Fed) toward a more hawkish monetary stance to combat rising prices. While Bitcoin has shown signs of stabilization, a prominent U.S. economist is predicting an imminent price reversal and has issued a strategic buy alert. Analysts remain focused on whether gold can reclaim technical resistance levels that previously targeted the $5,000 mark.