Stagflation expectations rise but international gold prices remain weak, briefly falling below $5,000 per ounce

WealthCoffee · 2026-03-17T13:17:58+00:00

The escalating US-Iran tensions are impacting markets, with spot gold prices declining over 5% due to stagflation expectations from soaring oil prices, falling below $5,000 per ounce at one point. Analysts point out that the blockade of the Strait of Hormuz has created short-term supply shortages, and even releasing strategic reserves cannot resolve the issue. Rising oil prices have become a quarter-level threat.

WealthCoffee

2026-03-17 13:17:58

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Caixin The Iran-U.S. war has entered its third week, with the conflict becoming increasingly tense. The market seems to be gradually trading on expectations of stagflation caused by a sharp rise in oil prices, but gold, as a safe-haven asset, appears powerless.

Since March, spot gold and London gold have collectively fallen by over 5%. On March 16, during trading, gold even briefly broke below the important psychological level of $5,000 per ounce, with a low of $4,969.84 per ounce.

An insurance asset management macro analyst believes that the Strait of Hormuz remains effectively blocked, and a short-term deadlock is difficult to break. Even releasing strategic reserves cannot resolve the circulation shortage. The rising oil price center has become an undeniable quarterly threat. The oil supply dilemma visible in April is pushing stagflation trading into its second phase.

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