23.03.202600:57:17UTC+00Gold Extends Fall as Selloff Continues

Gold fell below $4,400 per ounce on Monday, extending its decline into a fourth straight week as the escalating conflict in the Middle East heightened inflation fears. At the same time, major economies are under growing pressure to inject liquidity into their financial systems—potentially including gold sales—to cushion the war’s economic impact.

The war involving Iran shows little sign of de-escalation. President Donald Trump has threatened strikes on Iranian power plants if the Strait of Hormuz is not reopened, while Tehran has warned it would retaliate by targeting key US and Israeli assets across the region if its energy infrastructure is attacked.

Last week, gold tumbled more than 10% as soaring oil prices stoked concerns about rising inflation, leading markets to price in a longer-than-expected pause in monetary easing and even the risk of renewed rate hikes by major central banks. Traders are increasingly positioning for a possible Federal Reserve rate increase toward the end of the year amid fears that inflation will remain stubbornly high. The ECB, BOE and BOJ also left interest rates unchanged last week, but all signaled they are prepared to tighten policy further should inflationary pressures persist.