Gold and silver prices fell due to profit-taking pressure from traders.
2026-03-12 01:49:47
On Wednesday (March 11), during the US trading session, gold and silver prices fell due to profit-taking by short-term futures traders. The strengthening US dollar index also contributed to the downward pressure on metal prices. Currently, spot gold prices have fallen back to around $5161 per ounce (a daily decline of approximately 0.6%, with some periods seeing lows as low as $5149), while spot silver prices are fluctuating between approximately $85 and $88 per ounce (a larger daily decline of approximately 3%-4%, reaching a low near $85).
The US Consumer Price Index (CPI) report released today was largely in line with market expectations and had no significant impact on the metals market. The US CPI rose 0.3% month-on-month and 2.4% year-on-year in February; the core CPI, excluding food and energy, rose 0.2% month-on-month and 2.5% year-on-year. Market interpretation: Overall inflation data was moderate, but potential upside risks to energy prices (affected by geopolitical conflicts) may gradually emerge in the coming months, limiting the direct short-term impact on precious metals.
Looking at key external markets, the US dollar index (DXY) rose during the day and is currently trading around 99.00-99.30 (an intraday increase of about 0.3%-0.4%); NYMEX crude oil futures prices rose, with WTI crude oil currently trading around $86-88 per barrel (an intraday increase of about 3%-5%, reaching a high of nearly $89), and Brent crude oil once approaching $91-92 per barrel; the benchmark 10-year US Treasury yield is currently around 4.15%-4.22% (a slight increase, reflecting a slight adjustment in market expectations for long-term inflation).
Oil prices rose nearly 4-5 percent (with larger gains on some trading days, briefly approaching $90) as renewed attacks on ships in the Strait of Hormuz (attacking at least 3-5 merchant vessels, with some reports suggesting an escalation of Iranian mine-laying operations) heightened concerns about supply disruptions. Analysts say the International Energy Agency's (IEA) proposed release of 40 million barrels of oil reserves, the largest in history, is insufficient to fully alleviate these concerns, as Iran's continued blockade of the strait and threats to prevent even a "liter of oil" from passing could result in actual supply disruptions exceeding 15 million barrels per day, far exceeding the short-term buffer capacity of the reserve release. Iran has also fired on Israel and other targets in the Middle East, stating that the world should prepare for oil prices to reach $200 per barrel. An Iranian military spokesman warned that oil prices would depend on this due to the compromised regional security, adding, "Be prepared for oil prices of $200 per barrel."
Standard Chartered analysts point out that it's not uncommon for gold prices to face downward pressure for several weeks amid strong cash demand. We maintain an optimistic view on the long-term outlook for gold and expect it to continue its upward trend after a short-term profit-taking pullback.
"The gold market appears to be caught in a tug-of-war between war-driven safe-haven demand and concerns about persistently high interest rates," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Goldman Sachs and JPMorgan Chase, among other institutions, have recently reiterated that geopolitical risk premiums have significantly increased the floor support for gold. If the Strait of Hormuz crisis lasts for more than 30 days, gold may retest the high range of $5,400-$5,600. Conversely, if tensions ease in the short term, the short-term pullback target is the psychological level of $5,000.
Technical Analysis
(Spot gold daily chart source: FX678)
The daily chart for gold shows a short-term pattern of high-level consolidation and pullback, with $5,150-$5,100 as the key support zone (near the 50-day moving average) and $5,250-$5,300 as the initial resistance. Silver, on the other hand, is more weak, with the gold-silver ratio rising to about 60:1, suggesting that industrial demand for silver is more significantly squeezed by high oil prices in the short term.
Other supplementary risk warnings:
The market is currently highly focused on the Federal Reserve's March interest rate meeting (expected to keep rates unchanged) and US energy inventory data, coupled with the possibility that any unexpected developments in the Middle East situation could trigger sharp fluctuations. In the long term, continued central bank gold purchases (estimated to exceed 800 tons annually in 2025-2026) and expectations of further accelerating inflation remain solid supports for the structural bull market in gold.
The US Consumer Price Index (CPI) report released today was largely in line with market expectations and had no significant impact on the metals market. The US CPI rose 0.3% month-on-month and 2.4% year-on-year in February; the core CPI, excluding food and energy, rose 0.2% month-on-month and 2.5% year-on-year. Market interpretation: Overall inflation data was moderate, but potential upside risks to energy prices (affected by geopolitical conflicts) may gradually emerge in the coming months, limiting the direct short-term impact on precious metals.
Looking at key external markets, the US dollar index (DXY) rose during the day and is currently trading around 99.00-99.30 (an intraday increase of about 0.3%-0.4%); NYMEX crude oil futures prices rose, with WTI crude oil currently trading around $86-88 per barrel (an intraday increase of about 3%-5%, reaching a high of nearly $89), and Brent crude oil once approaching $91-92 per barrel; the benchmark 10-year US Treasury yield is currently around 4.15%-4.22% (a slight increase, reflecting a slight adjustment in market expectations for long-term inflation).
Oil prices rose nearly 4-5 percent (with larger gains on some trading days, briefly approaching $90) as renewed attacks on ships in the Strait of Hormuz (attacking at least 3-5 merchant vessels, with some reports suggesting an escalation of Iranian mine-laying operations) heightened concerns about supply disruptions. Analysts say the International Energy Agency's (IEA) proposed release of 40 million barrels of oil reserves, the largest in history, is insufficient to fully alleviate these concerns, as Iran's continued blockade of the strait and threats to prevent even a "liter of oil" from passing could result in actual supply disruptions exceeding 15 million barrels per day, far exceeding the short-term buffer capacity of the reserve release. Iran has also fired on Israel and other targets in the Middle East, stating that the world should prepare for oil prices to reach $200 per barrel. An Iranian military spokesman warned that oil prices would depend on this due to the compromised regional security, adding, "Be prepared for oil prices of $200 per barrel."
Standard Chartered analysts point out that it's not uncommon for gold prices to face downward pressure for several weeks amid strong cash demand. We maintain an optimistic view on the long-term outlook for gold and expect it to continue its upward trend after a short-term profit-taking pullback.
"The gold market appears to be caught in a tug-of-war between war-driven safe-haven demand and concerns about persistently high interest rates," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Goldman Sachs and JPMorgan Chase, among other institutions, have recently reiterated that geopolitical risk premiums have significantly increased the floor support for gold. If the Strait of Hormuz crisis lasts for more than 30 days, gold may retest the high range of $5,400-$5,600. Conversely, if tensions ease in the short term, the short-term pullback target is the psychological level of $5,000.
Technical Analysis
(Spot gold daily chart source: FX678)
The daily chart for gold shows a short-term pattern of high-level consolidation and pullback, with $5,150-$5,100 as the key support zone (near the 50-day moving average) and $5,250-$5,300 as the initial resistance. Silver, on the other hand, is more weak, with the gold-silver ratio rising to about 60:1, suggesting that industrial demand for silver is more significantly squeezed by high oil prices in the short term.
Other supplementary risk warnings:
The market is currently highly focused on the Federal Reserve's March interest rate meeting (expected to keep rates unchanged) and US energy inventory data, coupled with the possibility that any unexpected developments in the Middle East situation could trigger sharp fluctuations. In the long term, continued central bank gold purchases (estimated to exceed 800 tons annually in 2025-2026) and expectations of further accelerating inflation remain solid supports for the structural bull market in gold.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
