ETO Markets Global Pulse: Gold Slips Near 5005 as Inflation Fears Rise

Market Review

According to ETO Markets monitoring, on March 16 (Monday) gold prices edged lower. Rising concerns that prolonged Middle East tensions could push inflation higher reinforced the “higher for longer” rate outlook, weighing on gold. Spot gold closed slightly above the USD 5,000 level.

During Asian trading on March 17 (Tuesday), spot gold moved within a narrow range and was trading near USD 5,005.87/oz.

Global Headlines

Iran Warns of Strong Retaliation if Kharg Island Is Attacked

A spokesperson for Irans armed forces stated that any U.S. attack on Kharg Island or related oil facilities would trigger a decisive response, including strikes on energy infrastructure of countries involved, raising supply risk concerns.

Five Nations Call for De-escalation in Israel–Lebanon Tensions

Germany, France, the United Kingdom, Italy, and Canada issued a joint statement urging de-escalation between Israel and Lebanon, advocating for a political solution and warning that a large-scale ground offensive could lead to severe humanitarian consequences.

U.S. Military Planning Includes Exit Options

Sources indicated that U.S. operational plans regarding Iran include multiple exit strategies to adapt to evolving conditions, reflecting internal divisions over the duration and impact of the conflict.

Rate-Cut Expectations Continue to Be Delayed

CME FedWatch data shows a 99.1% probability that the Federal Reserve will keep rates unchanged this week, with expectations for rate cuts continuing to shift further out.

ETO Markets Analyst View (Spot Gold)

From a technical perspective, USD 5,035 stands as the key near-term resistance. As long as prices remain below this level, gold stays biased to the downside, with targets at USD 4,965 and USD 4,945. A break above USD 5,035 could open room for a rebound toward USD 5,070 and USD 5,100.

RSI is hovering near the neutral 50 level, indicating unclear momentum. Gold continues to trade between inflation expectations, rate outlook, and geopolitical developments, with short-term volatility remaining elevated. Investors should carefully assess trading rhythm and risk exposure.

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