Gold rises as investors buy the dip, while fading rate-cut bets cap upside
Gold pure gold bar models captured in Shanghai, China on March 15, 2026.
Cfoto | Future Publishing | Getty Images
Gold rose more than 1% on Monday on bargain-hunting, but was set for its largest monthly decline in nearly two decades as rising oil prices due to the escalating war in the Middle East all but eliminated U.S. interest rate cut bets for the year.
Spot gold rose 0.8% to $4,529.58 per ounce, after gaining more than 1% earlier. U.S. gold futures for April delivery gained 0.8% to $4,558.30.
“After prices touched multi-month lows last week, traders saw an opportunity to buy the dip, driving the gains in the precious metal seen today and on Friday,” said ActivTrades analyst Ricardo Evangelista.
Spot gold fell to $4,097.99 per ounce last Monday, its lowest since November 24, 2025. The metal has fallen more than 14% so far this month, on track for its largest monthly fall since October 2008, pressured by the U.S. dollar, which has gained more than 2% since the U.S.-Israeli strikes on Iran began on February 28.
Oil prices extended gains on Monday, with Brent headed for a record monthly rise after Yemeni Houthis launched attacks on Israel over the weekend, widening the ongoing conflict.
“Traders expect oil prices to remain elevated for a prolonged period, in a dynamic that is likely to fuel inflation and force central banks to adopt restrictive measures, keeping rates on hold or even prompting further hikes,” Evangelista added.
While inflation typically boosts gold’s appeal as a hedge, elevated interest rates weigh on the non-yielding metal’s demand.
Traders have almost completely priced out any chance of a U.S. rate cut this year.
Bullion, which hit a record high on January 29, is still set for an about 5% gain this quarter.
Investors await Federal Reserve Chair Jerome Powell’s remarks at a Harvard event later in the day.