Gold Prices Plunge Amid Debt, Yield Concerns

0:00Gold prices have plunged nearly 9 percent in the past week, marking one of the biggest drops in decades. Spot Gold fell from around $4,860 on March 18, 2026 to about $4,47. Dollars now, rising treasury yields and the Federal Reserve's decision to hold rate steady that day, fueled doubts about quick rate cuts, putting pressure on the non-yielding metal. Tensions with Iran have driven up energy prices, with brink crude hitting $111.90 and US crude at $98.35. This sparked fresh inflation worries, making gold less appealing in the short term, as the dollar strengthened and yields climb to 8 month highs. The U.S. national debt has ballooned to $39 trillion, with annual interest costs nearing $520 billion, or 17 percent of federal spending. The Congressional Budget Office projects a $1.9 trillion deficit for fiscal 2026, pushing

1:01public debt to 101 percent of gross domestic product this year. Old Hansen, head of commodity strategy at Saxo Bank, says investors should ignore the noise and focus on this debt pile-up as a major long-term boost. For Gold, despite recent profit-taking, widening deficits and sustainability risks are drawing buyers back to the safe haven asset over time. Wall Street analysts still see gold heading towards $6,000 or higher by year end. For Gold to rebound, yields need to ease, and prices must reclaim key averages around $5,080 and $4,900, $80, setting the stage for fresh gains amid ongoing fiscal challenges. That's your update from Durham News Today, powered by AI.