Precious Metals Price Update: Gold, Silver, PGMs Down as War Escalates and Fed Sits on Rates

March 18, 2026 04:10:00 pm

Source: Investing News

2026-03-18 16:10:00 ET

Precious metals prices are facing strong headwinds as the markets respond to the escalating Iran war, a stronger US dollar and this week’s Fed interest rate decision.

The conflict in the Middle East continues to dictate prices for precious metals, hamstringing the market forces that had earlier brought about new record highs for gold, silver and platinum.

This week adds another layer of downward pressure on precious metals prices as the US Federal Reserve has to factor in higher oil prices and the broader market impact of higher cost inputs for many sectors when making critical decisions about the direction of its monetary policy in 2026.

Let’s take a look at what’s got the precious metals moving over the past week.

?Gold price

Gold prices have lost more than 5.7 percent over the past seven day period and are down almost 10 percent from the US$5,400 per ounce reached on March 2 as this latest conflict broke out in the Middle East.

The initial rush to safe-haven demand soon gave way to fears that triple digit oil prices would stoke inflation. On top of that, higher oil prices make for a stronger US dollar as the global oil trade is conducted in greenbacks and the US is the world’s largest oil producer. A stronger US dollar makes gold more expensive for foreign buyers, taking much of the wind out of the sails for the yellow metal’s price appreciation.

Speaking of inflation, this week’s US Federal Reserve interest rate decision also weighed down gold prices. Investors had anticipated that the Fed would sit on current interest rates for longer.

“Alongside this monetary pressure, there is a noticeable escalation in geopolitical risks, particularly in the Middle East, which has driven energy prices higher and reignited concerns over persistent inflation,” explained Rania Gule, Senior Market Analyst at XS.com , in a market commentary shared with INN. “This factor complicates the Fed’s position, making it more difficult to shift toward a new easing cycle amid an unstable inflationary environment.”

On March 12, gold was trading at an intraday high of US$5,184.94 per ounce in the morning trade, before shedding more than a US$100 to close at US$5,079.14 per ounce investors liquidated positions to meet margin calls amid a broader sell-off in global equity markets.

Gold recovered back over the US$5,100 level in early morning trading on March 13, only to continue its downward correction to US$5,067.28 per ounce near the end of the day as investors spooked on revised downward US GDP figures for the fourth quarter and persistent inflationary pressures that dampened expectations for interest rate cuts.

On March 16, gold prices kicked off a new week by sinking below the key psychological US$5,000 mark to as low as US$4,977.09 per ounce on aggressive selling from retail and institutional investors after the price broke through key technical support levels. The price of gold barely managed to settle the trading day at US$5,006.44 per ounce.

Gold prices continued to see-saw below and above US$5,000 the following day, but once again managed to end the trading session barely above the line at US$5,003.08 per ounce.

It seemed as if $5K gold was a new key supportive price level rather than a level of resistance for gold buyers.

However, on the morning of March 18, anticipation of the Fed’s decision to hold interest rates steady and for longer triggered investors to take profits and run. By 11:30am PST gold was down to US$4,885.30 per ounce.

Here are the primary drivers for gold this past week:

Geopolitical conflict in the Middle East has escalated with Iran attacking Saudi Arabia and the UAE as well as effectively blocking the Strait of Hormuz. US strikes on Kharg Island are also upping the ante in this war. Investors are coming to terms with the damage done to global oil markets.

Oil prices are up over 10 percent since last week, increasing the threat of inflation and strengthening the US dollar.

A rebounding US dollar and elevated 10-year Treasury yields are placing downward pressure on gold prices.

High oil prices are also raising concerns about sticky inflation ahead of the US Federal Reserve March meeting and potentially fewer Fed rate cuts in 2026.

Institutional investors are selling gold positions to meet margin calls or cover losses elsewhere in the broader markets.

Central bank purchases continue to provide a structural floor for gold.

For more insight into what’s moving the gold market, check out the Investing News Network's recent interviews:

In other gold news , Australia’s largest primary-listed gold producer, Northern Star Resources (ASX:NST,OTCPL:NESRF) , adjusted its fiscal 2026 gold output down to 1.5 million ounces from its previous guidance range of 1.6 million to 1.7 million ounces for the year ending in June. This is due to operational problems at a key processing facility.

Silver price?

The price of silver has also come under fire during the raging war in the Middle East, with losses at nearly 11 percent over the past seven days. The precious metal’s price resilience has come under pressure by the same macroeconomic factors moving gold.

After starting the morning of March 12 at US$87.43 per ounce, silver had fallen sharply to an intraday low of US$83.06 per ounce in the afternoon session. On March 13, the white metal had bounced back to US$84.46 per ounce before quickly slipping to US$79.47 in the morning trade. Silver managed to close out the day up above the US$80 level at US$80.60 per ounce.

On March 16, silver was back down to an intralow of US$77.18 in the early morning before rising as high as US$81.45 per ounce before finishing the session at US$80.73 per ounce. Silver's industrial side reacted sharply to weak economic data from China .

The following day, the white metal managed to decline further to US$78.74 per ounce in the morning before closing the day below the US$80 level at US$79.28 per ounce.

March 18's Fed rate decision brought further pain to the price of silver, which had fallen to US$76.43 per ounce by 1130am PST.

Silver prices are finding a floor of support in the US$78 to US$80 per ounce range due to a persistent structural supply deficit and strong industrial demand. The world’s most electrically and thermally conductive metal, silver is integral in a number of growth sectors such as solar panels, electric vehicles and artificial intelligence technology.

“I believe the most likely short-term scenario is for silver to continue trading within volatile but relatively contained ranges, with a slight downward bias as long as expectations for elevated interest rates persist,” stated Gule. “ Any strong bullish breakout would likely require a clear shift in the Fed’s stance, either through explicit signals of a rate-cutting cycle or a tangible easing of inflationary pressures. Conversely, further geopolitical escalation may help limit downside risks, but alone it is unlikely to drive a sustained upward trend.”ence technology. The entrenched silver supply deficit also continues to provide a floor of support for the metal’s price.

Want more information about today’s silver market, check out INN’s interview: Ted Butler: Silver Blow-Off Top Years Away, How to Play Volatility .

In silver mining news, Silver Viper Minerals (TSXV:VIPR,OTCQB:VIPRF) has inked a definitive share purchase agreement with Fresnillo (LSE:FRES,OTCPL:FNLPF) and Orex Minerals Inc. acquisition of the Coneto silver-gold project in Durango, Mexico.

?Platinum price

Platinum has held up fairly well these past seven days compared to its precious metals sisters, with prices down by 5.4 percent. Investors are increasingly turning to platinum as a safe-haven asset alongside gold.

Platinum prices were trading slightly above the US$2,200 mark March 12, before dropping to a low of US$2,120.30 per ounce late in the trading day. On March 13, prices for the precious metal continued to slide to a low of US$2,016.10 per ounce.

The price of platinum recovered to US$2,113.70 per ounce on March 16, as investors bought dip. The following day brought further upside for platinum price as it rose as high as US$2,162 per ounce in the morning trading session before closing at US$2,124.80 per ounce. After touching a four-week low last week, investors are "buying the dip" on the belief that platinum is historically undervalued relative to gold.

Following the Fed rate decision on March 18, platinum prices had sank to US$2,055.50 per ounce by 1130am PST.

While platinum prices initially followed the broader sell-off in gold and silver, the metal is now outperforming due to its specific industrial and supply-side drivers.

Production remains tight as aging mines and power instability continue to plague South Africa’s platinum mining sector which accounts for more than 70 percent of global supply. Depleted above-ground stocks are providing a floor that prevents deep price collapses. The World Platinum Investment Council (WPIC) is forecasting a fourth consecutive annual deficit for 2026 at a projected 240,000 ounces.

On the demand side, automakers continue to use platinum in catalytic converters, anchoring long-term industrial demand. The WPIC is reporting that platinum exchange-traded funds (ETF) holdings, which increased by 234,000 ounces in 2025, are expected to remain at steady levels in 2026. Additionally, bar and coin investment is forecast to grow by 35 percent in 2026 to reach 725,000 ounces, the highest level recorded in the WPIC's dataset history.

For more on the supply and demand fundamentals shaping the precious metals market: Edward Sterck: Platinum Records Biggest Deficit Ever in 2025, What's Next?

?Palladium price

Palladium prices are down by 6.7 percent over the past seven days, following the precious metals on their downward slide.

On March 12, palladium slipped from an early morning high of US$1,686.50 per ounce to as low as US$1,628.50 per ounce before finishing the day at US$1,636.50 per ounce. Palladium prices lost a lot of ground on March 13 as the metal started the morning session trading at around US$1,616 per ounce, later falling to US$1,558 again near the closing of the trading day. Palladium was pulled lower alongside gold and silver as investors shifted away from "risk-off" assets after US GDP data was revised downward.

On March 16, palladium recovered to US$1,607 per ounce in the morning and went on to close at US$1,673.50 per ounce. However, the following day palladium’s price reversed course yet again to track downward from US$1,648 per ounce before sliding to close at US$1,617.50 per ounce.

The price of palladium was trading as low as US$1,538.50 per ounce as of 1130am PST on March 18 following the Fed’s rate decision.

Palladium prices are at three-month lows, but there is plenty of support for the metal in the US$1,650–$1,700 per ounce range. That’s due to continued supply constraints and changes to government auto mandates.

Persistent supply issues include production disruptions in South Africa and uncertainty over Russian exports. On the demand side, regulatory changes in Europe extending the time period when gas-powered vehicles can remain on the market means palladium will still be in demand for use in catalytic converters.

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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.