Gold Rises Off a Two-Month Low Even as the Dollar and Yields Rise

09:33 AM EDT, 03/20/2026 (MT Newswires) -- Gold rose off a two-month low early Friday, rebounding despite a higher dollar, rising treasury yields and dimming hopes for lower interest rates.

Gold for April delivery was last seen up $69.60 to US$4,675.60 per ounce, after falling to the lowest since Jan. 16 a day earlier.

The precious metal has failed to retest its Jan.29 record high as momentum buying faded and the war on Iran is raising oil prices and threatening higher inflation and rising interest rates. The Federal Reserve this week kept its benchmark rate unchanged. Fed Chair Jerome Powell said inflation is not coming down as quickly as the central bank hoped, with markets are no longer expecting any cut to interest rates this year.

"When viewed within the energy-centric and inflationary context of Iran-derived uncertainty, we believe that this changed thinking, dollar strength, and higher yields all leave gold on its back foot. The move lower now represents one of the longer losing streaks in over a year as dollar and yields have moved against gold, and it could still be the case that profit taking continue," Christopher Louney, Natural Gas and Gold Strategist at RBC Capital Markets, wrote.

The dollar moved higher, with the ICE dollar index last seen up 0.27 points to 99.5. Treasury yields were sharply higher, with the yield on the U.S. 10-year note last seek up 9.9 basis points to 3.9%, while the 10-year note was paying 4.327%, up 7.4 points.

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