ETO Markets Global Pulse: Gold Plunges 6% Intraday, Rebounds After Losing 5100

Market Review

According to ETO Markets monitoring, on March 3 (Tuesday) global gold markets experienced extreme volatility. Amid rising inflation expectations driven by energy supply disruptions, a continued climb in U.S. Treasury yields, and the U.S. dollar index rebounding above 99, spot gold plunged as much as 6% intraday. Prices ultimately closed down 4.4% at USD 5,088/oz, marking the largest single-day decline since January 30. U.S. gold futures settled 3.5% lower at USD 5,123.70/oz.

During Asian trading on March 4 (Wednesday), spot gold opened higher and rebounded above USD 5,170/oz, with short-term volatility remaining elevated.

Global Headlines

Trump Announces Insurance for Gulf Energy Shipments

Former President Trump stated that the U.S. International Development Finance Corporation would provide political risk insurance for energy shipments passing through the Gulf. If necessary, the U.S. Navy may escort oil tankers through the Strait of Hormuz to ensure uninterrupted global energy transport.

Iran Claims Full Control of the Strait of Hormuz

Irans Revolutionary Guard Navy said the Strait of Hormuz is now fully under Iranian control and reported that more than ten oil tankers had been shelled in the area. Tehran warned that the region is effectively in a state of war, sharply raising maritime security risks.

Successor to Irans Supreme Leader May Be Decided Next Week

Sources indicated that the final vote for Iran‘s next Supreme Leader may be delayed until next week, after the conclusion of Ayatollah Khamenei’s funeral. Security measures surrounding related meetings have reportedly been raised to the highest level.

Petrodollar Dynamics Strengthen Dollar, Weigh on Gold

Market analysts noted that the Middle East conflict has pushed oil prices higher, while the dollar-denominated structure of global oil trade has increased demand for USD financing. The resulting dollar strength has added pressure to gold prices.

ETO Markets Analyst View (Spot Gold)

USD 5,175 is now the key near-term pivot. Sustained trading below this level may lead to a retest of support around USD 5,050 and USD 4,995. A move back above USD 5,175 would shift focus toward USD 5,260 and USD 5,335.

RSI remains below the neutral 50 level, indicating that short-term momentum is still relatively weak. While geopolitical tensions and energy risks continue to elevate market volatility, a stronger dollar and shifting rate expectations are exerting pressure on gold. Investors should monitor key levels closely and carefully manage trading rhythm and risk exposure.

Disclaimer

The information contained herein is for general reference only and does not constitute investment advice, a solicitation, or an offer to buy or sell any financial products.

ETO Markets does not guarantee the accuracy, completeness, or timeliness of the information and shall not be liable for any losses incurred from reliance on such content.