Gold prices continue to oscillate, analysts say it has entered a consolidation phase

GateUser-bd883c58 · 2026-03-22T21:37:10+00:00

Gold prices have rebounded after six consecutive days of declines, supported by bargain-hunting buyers. However, rising oil prices and a stronger dollar have increased inflation risks, weakening expectations for Federal Reserve rate cuts, leaving short-term gold price movements uncertain. Market experts predict gold will consolidate between 4500 and 5500 dollars.

GateUser-bd883c58

2026-03-22 21:37:10

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What are the key factors behind the consolidation phase of gold prices?

[Global Times Financial Report] On March 19, gold prices rebounded after falling nearly 4% on March 18, with bargain buyers helping gold withstand soaring oil prices and inflation risks. According to Bloomberg, gold prices rose as much as 1%, partially recovering from a six-day losing streak—the longest since late 2024.

The report states that rising oil and natural gas prices increase inflation risks, reducing the likelihood of rate cuts by the Federal Reserve and other central banks. This is unfavorable for gold, which does not pay interest; a strong dollar also weighs on commodities priced in USD.

“A stronger dollar and broader tightening pressures from developed market central banks introduce uncertainty into short-term gold trends,” said Nicholas Frappell, Global Head of Markets at ABC Refinery Pty. “However, if inflation rises faster than policy rates, declining real interest rates could support gold in the medium term.”

Although gold has gained about 12% so far this year, recent upward momentum has been hindered by weakening prospects for rate cuts and some investors selling gold to meet margin calls elsewhere in their portfolios.

“Gold has entered a consolidation phase,” said Christopher Wood, Head of Global Equity Strategy at Jefferies. “We expect gold to fluctuate between $4,500 and $5,500 per ounce.” (Wen Hui)

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