Gold price today: Why is gold rate down? Check latest gold price prediction for 2026

Gold price was down as nervous investors are keeping a close watch of the escalating Iran war, with all eyes on the latest deadline from U.S. President Donald Trump to reopen Strait of Hormuz. International gold rate was at $4,639.64 per ounce, a slip of 0.77 per cent from previous closing.

Global markets ​have been rattled since ​the U.S.-Israel war with Iran broke out at the end of February, with Tehran effectively closing the Strait of ⁠Hormuz, a key waterway that carries about a fifth of the world's total oil consumption. That ​has led to oil prices surging well above $100 per barrel, stoking fears of high inflation and ​upending rates outlook across the world. Worries about the hit to economic growth has also weighed as stagflation risks swirl.

Traders are now no longer pricing a move from the Federal Reserve well into the second half of 2027 compared with expectations of two rate cuts in 2026 at the start of the year. Data last week suggested U.S. labour market conditions remained calm in March though economists warned that a prolonged war in the Middle East posed a downside risk.


"Trump's latest deadline itself is bearish not ​because investors think war is guaranteed tomorrow if Iran does not open the Strait, but because every new ultimatum makes the disruption look longer, stickier, and more ​macro-negative," said Charu Chanana, chief investment strategist at Saxo in Singapore, as per Reuters report.

"Investors are treating this as an oil-to-inflation-to-rates problem, which is why the dollar remains the cleanest haven for now, while gold, bonds and yen have all looked far less reliable than in a normal geopolitical scare," Chanana said.

Spot gold is down 11.8 per cent in March, as higher oil prices triggered by the war in the Middle East ​weigh on bullion. The ​energy price surge ⁠has intensified inflation concerns and prompted markets to reassess interest rate expectations. Despite being a hedge against uncertainty and inflation, high rates raise ​the opportunity cost of holding the metal.

BMI kept its 2026 gold forecast ​at an ⁠annual average of $4,600, while Goldman Sachs continues to forecast the gold price reaching $5,400 by the end of 2026.