Gold Falls Below US$5,000 Per Troy Ounce for First Time Since Late February Amid Market Uncertainty

MOSCOW — Global gold prices retreated on Monday, slipping below US$5,000 per troy ounce for the first time since late February as investors monitored developments in the global economy and ongoing geopolitical tensions.

Market data showed that April gold futures on the New York COMEX exchange declined about 0.88% to around US$5,017 per troy ounce, after briefly dropping below the US$5,000 level earlier in the session — a threshold not breached since February 20.

The price movement reflects the highly volatile environment in global financial markets, where investors are balancing concerns about geopolitical conflicts, interest rate expectations, and broader economic outlooks.

Analysts noted that fluctuations in gold prices are closely tied to expectations regarding United States monetary policy, particularly decisions made by the US Federal Reserve. Most market observers currently expect the Fed to maintain its benchmark interest rate in the 3.5% to 3.75% range, although a small number of analysts are predicting a potential cut to between 3.25% and 3.5%.

Interest rate expectations play a significant role in the gold market because higher interest rates tend to reduce the attractiveness of non-yielding assets such as gold, pushing investors toward interest-bearing investments instead.

Meanwhile, geopolitical tensions—particularly the ongoing conflict in West Asia—continue to influence commodity markets. Investors are assessing how the conflict could impact global trade, energy supplies, and economic stability, all of which can affect demand for safe-haven assets like gold.

Despite the latest pullback, gold prices remain historically elevated. Earlier this year, the precious metal surged past US$5,000 per ounce, driven by strong safe-haven demand, central bank purchases, and concerns over global economic uncertainty.

Market analysts say the current dip may represent short-term profit-taking after the recent rally rather than a broader reversal of the long-term trend. Gold has traditionally been viewed as a hedge against inflation, currency fluctuations, and geopolitical risk, meaning demand often increases during periods of uncertainty.

In addition to gold, other precious metals also experienced declines during the same trading session. Silver futures for May delivery dropped approximately 1.48% to about US$80 per troy ounce, reflecting broader pressure across commodity markets.

Looking ahead, traders will continue to monitor global economic indicators, central bank policies, and geopolitical developments, all of which are expected to play a key role in determining the direction of gold prices in the coming weeks.