Gold bars weighing 1000 grams each are displayed at the Austrian Gold and Silver Refinery (Oegussa) in Vienna, Austria, on Feb. 3, 2026.
Georg Hochmuth | AFP | Getty Images
Gold rose 1% on Tuesday, as inflation fears receded after oil fell following U.S. President Donald Trump’s remarks that the Middle East war could “end soon”, while a weaker U.S. dollar and easing Treasury yields also provided support.
Spot gold was trading at $5,189.24 per ounce. U.S. gold futures for April delivery rose 1.9% to $5,199.70.
“The recovery in the stock markets also ended up providing respite for gold because of less margin requirements elsewhere, while a lower U.S. dollar and easing Treasury yields are definitely positive for gold markets (today) as well,” said Ricardo Evangelista, ActivTrades analyst.
Stocks rallied, and oil prices plunged by more than 7% after Trump’s remarks, easing concerns about prolonged disruptions to global oil supplies. In response to Trump, Iran’s Islamic Revolutionary Guards Corps said they would “determine the end of the war,” and Tehran would not allow “one litre of oil” to be exported from the region if U.S. and Israeli attacks continued.
The war has effectively shut the Strait of Hormuz, which handles one-fifth of the world’s oil supply, stranding tankers for over a week and forcing producers to halt output as storage fills up, sending energy prices soaring. The dollar fell 0.6% to a one-week low, making greenback-priced bullion cheaper for holders of other currencies, while the benchmark 10-year U.S. Treasury yields also eased, reducing the cost of holding bullion.
Meanwhile, investors expect the U.S. Federal Reserve to keep rates steady at the end of its two-day meeting on March 18, and also see the first rate cut of the year coming in July, per CME Group’s FedWatch tool.
Markets are now awaiting the U.S. consumer price index for February, due on Wednesday, and Personal Consumption Expenditures (PCE) index – the Fed’s preferred inflation gauge – on Friday.