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Below the Quote on Gold Commentary 19th March 2026 by Mr. Manav Modi, Analyst – Precious Metal -Research, Motilal Oswal Financial Services Ltd

Gold prices breach $4700 on comex as Fed held interest rates steady at 3.50%–3.75% and signaled uncertainty over the inflationary and economic impact of rising oil prices.

Despite ongoing geopolitical tensions, bullion remained under pressure as markets focused on the likelihood of higher-for-longer interest rates amid persistent inflation risks. U.S.-Israel conflict with Iran showed no signs of easing, following reports of an Israeli strike that killed senior Iranian official Ali Larijani and a subsequent attack on the world’s largest natural gas field shared by Iran and Qatar, keeping oil prices elevated above $100 per barrel. Disruptions in the Strait of Hormuz, a key global oil transit route, have pushed crude prices near four-year highs, intensifying concerns over energy-driven inflation.

The Federal Reserve’s updated projections indicated a higher outlook for core PCE inflation this year, with Chair Jerome Powell acknowledging that rising oil prices will contribute to inflationary pressures while emphasizing that the economic implications of the conflict remain uncertain. fed chair Powell reiterated that inflation is still somewhat elevated, near-term expectations have risen due to energy prices, and the central bank will adopt a wait-and-watch approach as the situation evolves.

While the Fed maintains its long-term inflation target of 2%, markets now expect policymakers to remain cautious, limiting upside in gold despite ongoing safe-haven demand. Yesterday’s’ better than expected US PPI data also weighed on rate cut expectations. Focus now shifts to policy decisions from BOE and ECB

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