$XAUUSD Spot Price Plunges More Than 4%, Downtrend Expected to Continue

LONDON. $XAUUSD spot prices plummeted more than 4% on Thursday (19/3/2026), declining for the seventh consecutive session, as Middle East conflict drives up energy prices and triggers inflation concerns. This simultaneously strengthens expectations that major global central banks will maintain high borrowing costs.

On Thursday (19/3/2026), $XAUUSD spot prices fell 4.3% to US$4,612.21 per ounce at 1:31 PM ET (1731 GMT), the lowest level since early February.

US ( futures contracts for April delivery closed 5.9% lower at US$4,605.70.

") is now a very crowded position held by institutional investors and it has been supported by a year-long depreciation trade. However, the foundation of that trade is now weakening," said Daniel Ghali, commodity strategist at TD Securities according to Reuters.

"For the near term, we continue to see downside risks. There is substantial room for to decline while maintaining support from its bull market era trend," he added.

is valued as a hedge against inflation and geopolitical volatility, but because it generates no interest, tends to lose its appeal during periods of high interest rates.

Nearly all developed market central banks held interest rates unchanged this week, but emphasized their readiness to combat inflation should energy shocks from the US-Israel war against Iran persist.

Brent crude oil prices surged above US$110 per barrel after Iran attacked energy facilities across the Middle East following Israel's strike on the South Pars gas field.

Meanwhile, a US official and three people familiar with the matter said the Trump administration is considering deploying thousands of US troops to reinforce its operations in the Middle East as the Iran war enters a new phase.

Analysts at SP Angel said has been hit by profit-taking and a stronger dollar, noting that following its strong rally in 2025, it is unsurprising to see traders locking in gains to cover margin calls and shifting to new trades such as hydrocarbons amid renewed volatility.

Meanwhile, spot silver prices fell 5.3% to US$71.39 per ounce. Platinum fell 3.7% to US$1,949.20, and palladium fell 2.4% to US$1,440.29.

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