Why are gold prices falling despite geopolitical risks?

Policy factors dominate now. A strong US dollar and high real yields increase the cost of holding gold. Even when fear rises, safe haven demand may not offset tighter financial conditions. If inflation eases and yields fall, gold could find support again. Until then, rallies can be brief and uneven.

How do Fed interest rates affect gold?

Higher Fed interest rates lift real yields and make interest-bearing assets more attractive than gold, which pays no income. When markets expect cuts, bond yields often drop and gold tends to benefit. Watch upcoming inflation and jobs data because they shape the timing and size of any policy shift.

What should Singapore investors consider before buying gold now?

Check your currency exposure, product structure, and costs. Bullion is priced in USD, so SGD returns may differ from spot moves. Choose liquid ETFs or products with tight spreads, and size positions modestly. Decide if the role is a long-term hedge or a tactical trade, then set clear rules for rebalancing.

Are gold miners a good substitute for bullion exposure?

Miners provide leveraged exposure to gold prices but add company risks like costs, hedging, and balance sheets. They can outperform in rising markets and underperform in declines. If you want purer exposure, consider bullion-backed funds. If you accept equity risk, diversify across quality producers with strong cash flows.

Global Market Insights

March 22: Gold Near Two-month Lows as Dollar Rebounds, Fed Stays Hawkish

ByHuzaifa Zahoor March 22, 2026March 22, 2026

Gold prices hovered near two-month lows on March 22 as a strong US dollar and a hawkish Federal Reserve pressured bullion. After its worst week since 1983 and a third straight weekly slide, sentiment remains fragile. Higher yields raise the cost of holding non-yielding assets and dampen safe haven demand. For Singapore investors, currency swings, product costs, and allocation size now matter more. We break down the drivers, key catalysts, and practical steps to manage exposure.