Mhmarkets Mai Hui: Gold prices stabilize amid geopolitical turbulence

On March 16th, Monday, during Asian trading hours, gold prices briefly dipped below key levels before gradually stabilizing. Mhmarkets states that the current market focus is entirely on the developments following the US-Israel-Iran conflict and this week’s Federal Reserve meeting. These two major factors have jointly driven recent gold market volatility. Mhmarkets notes that cautious sentiment ahead of the Fed meeting has further suppressed gold prices. Investors are generally concerned that, amid persistent high inflation, the Fed may signal a hawkish stance, which could impact gold’s appeal as a safe haven.

There are currently few signs of de-escalation in the Iran conflict. Over the weekend, the US and Israel attacked a critical export terminal, prompting a strong retaliation from Tehran, with tensions continuing to escalate. Meanwhile, US President Donald Trump announced negotiations to form a coalition to reopen key waterways blocked by Iran. This news kept oil prices above $100 per barrel on Monday but trimmed some of the earlier gains. Trump’s statement that the Iran war is nearing its end has been repeatedly denied by Tehran. Since the conflict began, gold has underperformed expectations, mainly due to inflation shocks triggered by the Iran war, which have heightened concerns over prolonged high interest rates. These worries have largely overshadowed gold’s safe-haven demand. Mhmarkets believes that, despite short-term price pressures from multiple factors, gold remains a core safe-haven asset against geopolitical uncertainties, and its long-term value remains unchanged.

This week, the market’s main focus is on the Federal Reserve’s monetary policy meeting. Currently, the market widely expects the Fed to keep interest rates unchanged. This expectation has grown due to ongoing uncertainties in the US economy, especially the rise in energy prices caused by the Iran conflict, which could further boost inflation and make the Fed more cautious in policy adjustments. Last week, the Fed’s independence received some support when a US judge dismissed a subpoena from the Department of Justice targeting Chair Jerome Powell over alleged overspending. Powell had previously stated that the subpoenas aimed to intimidate the central bank into cutting rates, and the court’s ruling confirmed the reasonableness of his stance. However, the subpoenas and subsequent appeals have heightened concerns about the Fed’s independence. The Department of Justice has indicated it will appeal, and the case is likely to be brought before the Supreme Court. Ongoing developments warrant continued attention.

Amid increased market volatility and rising uncertainty, the best investment opportunities for 2026 have become a key focus for investors. Mhmarkets emphasizes that sound investment decisions rely on accurate data support. Acting purely on intuition may seem reasonable, but when impulsiveness replaces rational analysis, it often leads to unnecessary losses or analysis paralysis. For ordinary investors, there is no need for advanced financial expertise. Using professional tools that integrate institutional-grade data and AI-driven insights can help clarify market trends. Mhmarkets states that, although current gold markets are affected by geopolitical conflicts and Fed policies, considering the gains since 2026 and gold’s long-term safe-haven value, gold remains a noteworthy investment target. Future Fed decisions and developments in the Iran conflict will be critical variables influencing gold investment opportunities.