Fed Rate Cut Expectations Cool, Gold's Safe-Haven Properties Temporarily Suppressed

MetaMuskRat · 2026-03-18T01:13:35+00:00

People Finance News, March 18 — Against the backdrop of ongoing geopolitical conflicts in the Middle East and disrupted shipping through the Strait of Hormuz, the global maritime "artery," gold as a traditional safe-haven asset has not experienced the anticipated sharp rally. Instead, it has entered a volatile downtrend since March. Industry insiders believe that multiple factors — including declining expectations for Federal Reserve rate cuts, the cyclical safe-haven advantage of the U.S. dollar becoming more prominent, and shifts in capital flows — have collectively caused this short-term divergence between gold prices and geopolitical risks. In the near term, gold prices are likely to remain range-bound with significant volatility, while over the long term, there remains upside potential. (China Securities Journal)

MetaMuskRat

2026-03-18 01:13:35

People’s Financial News, March 18 — Amid ongoing conflicts in Middle Eastern geopolitics and disruptions to the global shipping artery, the Strait of Hormuz, gold as a traditional safe-haven asset has not experienced the expected surge. Instead, since March, it has entered a period of volatile decline. Industry experts believe that multiple factors, including declining expectations of Federal Reserve rate cuts, the temporary safe-haven advantage of the US dollar, and shifting capital flows, have collectively caused a short-term divergence between gold prices and geopolitical risks. In the short term, gold prices are likely to fluctuate within a wide range, but in the long term, there remains potential for an upward trend. (China Securities Journal)

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