Gold prices fell 1% amid concerns that war could trigger inflation and dampen prospects for interest rate cuts.

Inflation concerns triggered by the Iran war have dampened expectations of interest rate cuts, causing gold prices to decline on Friday. Spot gold fell 0.9% to $5,032.98 per ounce. April gold futures dropped $80 or 1.6% to $5,045.8 per ounce. May silver futures plunged 5.3% to $80.6 per ounce. May copper futures declined 1.5% to $5.78 per pound. April platinum futures fell 5.8% to $2,040.5 per ounce. June palladium futures dropped 3.8% to $1,584.5 per ounce.

AASTOCKS00:01

Gold faces a perfect storm of stagflation.

Against the backdrop of the current global economic landscape, the dual pressures of slowing U.S. economic growth and persistent inflation are brewing an unprecedented "perfect stagflation storm" for the gold market. This economic predicament—characterized by stagnant growth alongside elevated inflation—precisely aligns with the core value proposition of gold, positioning this traditional safe-haven asset in an optimal window for allocation. According to revised data from the latest fourth-quarter GDP report released by the U.S. Department of Commerce, the U.S. economic growth rate stood at only 0.7%, nearly halved from the initial forecast of 1.4%. This revision not only vividly reflects the continued weakening momentum of the U.S. economic recovery but also sends a clear signal.

FX678 FinanceMar 13 22:11

The U.S. issues another victory declaration but is forced to ease sanctions on Russian oil.

The situation in the Middle East has recently escalated sharply, with U.S.-Iran confrontation entering a white-hot phase, causing violent fluctuations in global energy and financial markets. U.S. Defense Secretary Hegeseth has consecutively issued strong signals, stating that the U.S. is closely collaborating with Israel, with the core goal of preventing Iran from acquiring nuclear capabilities. He declared that the U.S. military launched its largest airstrike since the beginning of the conflict on that day, hitting more than 15,000 Iranian targets. Iran's defense industry will be completely destroyed, high-ranking Iranian officials have moved to underground bunkers, and the Supreme Leader has been injured. Meanwhile, after taking office for only four days, Iran's new Supreme Leader Mojtaba publicly articulated his worldview for the first time. Mojtaba fully continues the hardline approach of his predecessor:

FX678 FinanceMar 13 21:58

The core PCE in the U.S. hit a near two-year high in January, while the Q4 real GDP was revised down sharply.

Core inflation in the United States has risen month-over-month for two consecutive months, while economic growth in the fourth quarter was drastically revised downward. Amid a dual impact of surging oil prices triggered by Iran-related tensions and weak consumer spending, the Federal Reserve's rate-cutting playbook has been completely disrupted.

Golden10 DataMar 13 21:07

DBS: Expects the Federal Reserve to maintain interest rates in the first half of the year; Hong Kong stocks favor semiconductor supply chain and artificial intelligence-related sectors.

Hou Weifu, Chief Investment Officer of DBS Bank, expects that the United States will not cut interest rates in the first half of this year against the backdrop of rising international oil prices driven by Middle East conflicts, which in turn exacerbates inflation.

Zhitong FinanceMar 13 20:23

Gold and Silver Price Forecast: Risk Aversion Surge or Bull Trap?

During the European trading session on Friday (March 13), gold (XAU/USD) maintained a steady upward trend, trading around the 5,120-dollar range with strong buying support and relatively robust bullish sentiment. However, it is important to note that this bullish trend in gold prices was not driven by a single factor but primarily supported by two key elements: the escalating geopolitical tensions in the Middle East and global investors' urgent demand for safe-haven assets. On the other hand, the persistent strength of the US Dollar Index became a critical factor restraining further gains in gold prices. Recently, market participants have been closely monitoring the actions of the US Federal Reserve.

FX678 FinanceMar 13 20:14