Gold Hits Nine-Session Slump: Mideast Tensions Stoke Inflation

Posted on March 23, 2026 by Olumide Adesina

Gold fell for a ninth day as the Middle East conflict increased inflation risk and raised expectations of higher interest rates, wiping out this year’s gains.

Silver fell by over ten percent. Spot gold fell as much as 8.8% to almost $4,100 per ounce. Expectations of rate increases by the US Federal Reserve and other central banks have risen since the start of the conflict amid rising energy prices. Non-yielding gold, which recently recorded its largest weekly decline since 1983, is facing this challenge.

Crude was trading close to its highest close since mid-2022, and equity markets were likewise erratic during gold’s turbulent session. Three weeks have passed since the war started in February. 28, forced selling by investors looking to offset losses in other areas of their portfolios has contributed to bullion’s decline.

Wayne Gordon, an investment advisor at UBS Group AG’s wealth management division, stated, “The size of the gold selloff is not unprecedented, but the pace of the selloff has been much quicker than on many historical occasions.”

US President Donald Trump issued a two-day deadline over the weekend for Iran to reopen the Strait of Hormuz or face having its power plants bombed. Iran retorted that if its power plants were attacked, it would “completely” shut down the vital waterway and target infrastructure related to energy, information technology, and desalination.

David Wilson, director of commodities strategy at BNP Paribas SA, stated that bullion’s response “to the current macro-economic shock has a clear market precedent.”. “Gold initially fell as markets reacted to news flow, with investors typically selling assets to hold the US dollar, if you look at all three previous economic-shock cycles – in 2008, 2020, and 2022,” he stated.

The 14-day relative-strength index for bullion, which measures momentum, continued to decline below 30, a level that some traders believe signals an oversold situation. According to weekly US government data released on Friday, hedge funds and other major speculators increased their net-long position for gold to the highest level in seven weeks as of March 17.

European Gas Rally Resumes as US-Iran Hormuz Threats Escalate

Posted on March 23, 2026March 23, 2026 by Olumide Adesina

European natural gas futures continued to rise, adding anxiety to an already erratic market as traders watched the US and Iran trade threats over the Strait of Hormuz.

Early trading saw benchmark contracts rise more than 5%, reversing the decline from the previous session. Iran threatened to attack vital infrastructure throughout the Middle East if US President Donald Trump followed through on his two-day deadline to reopen Hormuz or have its power plants bombed on Saturday.

There is no indication that the conflict will lessen as it enters its fourth week. This month, nearly 20% of the world’s liquefied natural gas flows have been cut off by shipping through Hormuz, and the largest LNG plant in Qatar has been shut down, with roughly 17% of its capacity damaged. The nation has stated that it might take five years to get back to pre-war levels.

Given a greater detrimental effect on the world’s LNG supply, gas prices in Europe and Asia might need to “rally further,” according to Goldman Sachs Group Inc. Samantha Dart and other analysts stated in a note on Sunday. They further raised their price projections, stating that “last week’s widespread attacks on energy infrastructure in the Middle East suggest that energy supply disruptions will last longer than we previously expected.”

Traders are also keeping a close eye on gas stockpiling on the continent because Europe needs a lot of LNG this year to replenish its depleted stockpiles.

The European Union’s energy chief has advised member states to begin filling gas storage early to prevent supply competition during the summer. Energy Commissioner Dan Jorgensen wrote in a letter that governments should also reduce their storage filling targets to 80% and maximize the flexibilities provided by EU law.

China Pulls Silver From Global Markets at 8-Year High

Posted on March 23, 2026 by Olumide Adesina

China’s insatiable appetite for silver drove overseas purchases to an eight-year high at the beginning of 2026 as importers fueled a spike in industrial and investment demand

According to Chinese customs data released on Friday, the largest buyer in the world received over 790 tons in the first two months, including nearly 470 tons in February—the highest amount ever for that month. Due to strong demand, local prices have risen significantly above global benchmarks, reducing already low exchange reserves and prompting the acquisition of metal from overseas.

A wave of speculative buying from China and other countries drove silver prices up by roughly 70% at the beginning of the year, but by the end of January, they abruptly gave up their gains. This is the most volatile start to a year for silver prices.

The robust import numbers indicate that, despite changes in trade flows, physical consumption in China has continued. Demand has come from solar manufacturers front-loading production and retail investors hoarding silver bars as a substitute for the increasingly expensive gold.

A significant amount of the metal has traveled through Hong Kong, which acts as a gateway for precious metals traveling to the mainland, in an effort to seize an enticing arbitrage opportunity.

Stanley Cheung, AC Precious Metals Refinery Ltd.’s managing director, claimed that while large silver bars traded by banks normally trade at a discount to the benchmark in London, during the first two months, prices in the area have drawn a premium of up to $8 per ounce.

China’s massive imports haven’t yet disrupted the London market because of a record inflow of silver into the global trading hub following a historic squeeze last year.

The quantity of silver held in exchange-traded funds globally has dropped by more than 1,900 tons this year, making more metal available.

However, markets are breathing more easily for the time being. Yuan Zheng, an analyst at Henan Jinli Gold and Lead Group Co.’s Shanghai-based trading division, stated that as the rebate deadline approaches, the Chinese premium on silver has decreased and solar demand has slowed. “In the near future, there will be more supply than demand.

Fannie, Freddie Unleash Large MBS Bids to Stabilize Market and Lower Rates

Posted on March 23, 2026 by Olumide Adesina

Fannie Mae and Freddie Mac have started placing large orders to buy mortgage-backed securities, entering a market turbulent by widening bond spreads amid a spike in volatility.

The government-controlled companies are expanding their already substantial portfolios of bonds and loans to take advantage of a sharp selloff.

President Donald Trump gave instructions two months ago to buy $200 billion in MBS to increase housing affordability. The recent spike in spreads that caused mortgage rates to rise to a three-month high may be mitigated by the increased buying.

However, it might only partially counteract broader market pressures from the US-Iran conflict, which has raised borrowing costs and resulted in a noticeable increase in Treasury yields on Friday.

Through their so-called retained portfolios—the bonds and loans they hold onto rather than selling to investors—Fannie and Freddie, which buy and package home loans into securities and financially guarantee them to buyers, are among the biggest holders of US mortgage debt. Before being placed under federal conservatorship in 2008, the two had a combined value of $1.5 trillion; by late 2022, that amount had fallen to just $158 billion.

The portfolios have been increasing since the middle of last year, reaching $278 billion as of January. The roughly $9 trillion MBS market moved almost immediately after Trump ordered Fannie and Freddie to increase bond and loan purchases. The relative yields to Treasuries on recently issued securities narrowed by roughly 0.2 percentage points.

U.S Government SPR Drawdown Kicks Off: Initial Oil Barrels Enter Market

Posted on March 22, 2026 by Olumide Adesina

US President Donald Trump has planned an emergency release of 172 million barrels of oil, the first scheduled to begin flowing soon. According to a US Energy Department document, the US Strategic Petroleum Reserve is releasing about 45 million barrels.

This indicates that roughly half of the 86 million barrels the administration first offered were subscribed to by traders and refiners. Considering that Brent crude has traded above $100 per barrel, traders said there was surprisingly little interest in the amount of oil on offer.

Twenty percent of the world’s oil passes through the Strait of Hormuz, where shipments have virtually stopped due to the conflict in Iran. Brent closed at $112 on Friday.

The massive release of US emergency reserves is improving the supply outlook for Gulf Coast refiners, which is one reason why the US benchmark crude, West Texas Intermediate, has been trading at a sharp discount to Brent.

Even so, concerns about rising inflation are heightened by the fact that US retail gas prices have reached their highest point in almost four years. Trump is under tremendous political pressure to address the unexpected increase in fuel prices. Americans’ opinions about living expenses will play a significant role in the midterm elections in November, which will determine control of both chambers of Congress.

Polls indicate that the public has a negative opinion of the president’s economic management. The International Energy Agency’s relief plan, which aims to reduce energy costs, includes the stockpile release.

Up to 400 million barrels are being released by at least 30 countries. Eight businesses, including traders and refiners, will participate in the exchange offer.

China Swallows Silver at Record Pace, Draining Global Stocks to the Bone

Posted on March 22, 2026 by Olumide Adesina

China’s insatiable appetite for silver drove overseas purchases to an eight-year high at the beginning of 2026 as importers fueled a spike in industrial and investment demand

A significant amount of the metal has traveled through Hong Kong, which acts as a gateway for precious metals traveling to the mainland, in an effort to seize an enticing arbitrage opportunity.

China’s massive imports haven’t yet disrupted the London market because of a record inflow of silver into the global trading hub following a historic squeeze last year.

The quantity of silver held in exchange-traded funds globally has dropped by more than 1,900 tons this year, making more metal available.

Fear & Greed Flip: Bitcoin Drops to $68K as War Risks Dominate Markets

Posted on March 22, 2026 by Olumide Adesina

Bitcoin and other cryptocurrencies fell once more as the US, Israel, and Iran exchanged new threats and attacks. The biggest coin dropped as much as 3.3 percent to trade at about $68,150, the lowest level since early March. Other tokens saw a more intense selloff; at one point, Ether lost almost 5% to drop to $2,050.

Bitcoin has declined since the beginning of the conflict, losing about 20% since the US and Israel began attacking Iran at the end of February. The drawdown has revealed the limitations of a long-standing debate in cryptocurrency circles about the coin’s capacity to serve as a haven in emergencies

However, according to Peter Tchir, head of macro strategy at Academy Securities, there are additional factors at work, such as the fact that Bitcoin has become entangled in a larger selloff that has also pulled down stocks and other risky assets. Given that it increases the cost of token mining, higher energy prices might also be affecting the sector.

The cryptocurrency market, which is open around-the-clock, has given traders a weekend glimpse into how other assets might move once conventional markets reopen. As of around nine in the morning on Sunday, perpetual futures on Hyperliquid, a cryptocurrency exchange that has grown to be one of the biggest venues for 24-hour derivatives trading, showed oil-linked contracts rising by more than 2 percent to $98 per barrel.

The price of oil and other commodities increased after President Donald Trump threatened to bomb Iran’s power plants unless the nation reopened the Strait of Hormuz, a vital transportation route that has been essentially closed for weeks. Iran retaliated with its own threats, stating that if its fuel and energy infrastructure were attacked, it would target US and Israeli outposts in the Middle East. Iran’s attacks on Israel, meanwhile, seemed to be getting more intense already.

Fannie, Freddie Ramp Up Large MBS Bids in Push to Lower Mortgage Rates

Posted on March 22, 2026 by Olumide Adesina

Fannie Mae and Freddie Mac have started placing large orders to buy mortgage-backed securities, entering a market turbulent by widening bond spreads amid a spike in volatility.

The government-controlled companies are expanding their already substantial portfolios of bonds and loans to take advantage of a sharp selloff.

However, it might only partially counteract broader market pressures from the US-Iran conflict, which has raised borrowing costs and resulted in a noticeable increase in Treasury yields on Friday.

US Allows Sale of Stranded Iran Oil to Cap Fuel-Price Rises

Posted on March 21, 2026 by Olumide Adesina

The US has permitted the sale of Iranian oil and petrochemical products that have been loaded onto tankers in its most recent attempt to combat rising oil prices brought on by the Middle East conflict.

The Department of the Treasury issued a general license for energy that is already on board vessels; these purchases are permitted through April 19. The measure comes after similar actions for Russian oil on the water in an effort to alleviate an unprecedented fuel supply shortage brought on by the conflict.

Chinese consumers currently purchase the great majority of Iran’s oil, primarily from independent refiners known as “teapots.”

Although the US waiver would increase the number of buyers, any new clients would deal with the difficulties of structuring transactions. Iran is subject to other restrictions, such as its access to international financial markets.

Only a few Iranian and Chinese tankers are passing through the Strait of Hormuz, where 20% of the world’s oil normally passes, as a result of the US and Israeli war on Iran.

This month, the price of Brent crude has increased by over 50%, and the value of Middle Eastern oil, such as the flagship Murban grade from Abu Dhabi, has doubled.

In the run-up to the November midterm elections, the US president and the Republican Party are under tremendous pressure due to the consequent increase in fuel prices for American consumers.

Long-term inflationary pressures would make it more difficult for the GOP to hold onto both the Senate and the House, and losing either chamber would make it more difficult for Trump to implement his agenda.

In a post on X, US Treasury Secretary Scott Bessent described the Iranian oil waiver as a “narrowly tailored, short-term authorization permitting the sale of Iranian oil currently stranded at sea,” noting that it will release roughly 140 million barrels.

British Airways Suspends Dubai Flights Until End of May Due to Regional Instability

Posted on March 21, 2026 by Olumide Adesina

British Airways anticipates months of disruption in the Gulf, as evidenced by the cancellation of all flights into Dubai until at least June. The airline announced on Monday that it would not operate flights to Doha, Qatar, until the end of April and to Dubai, Amman, Bahrain, or Tel Aviv until after May 31. There won’t be any flights to Abu Dhabi until later this year. As the conflict enters its third week, this is the longest major airline cancellation announced thus far.

Lufthansa and Air France, two European competitors, have announced cancellations this month. Travel agencies have also begun to cancel vacation packages that pass through the United Arab Emirates, citing the insurance risk of passengers becoming stranded through its airports.

BA’s decision was made just hours after a drone attack that started a fire at a nearby fuel tank early on Monday, forcing Dubai’s main airport to close for seven hours. Flights operated by Emirates had to be rerouted.

Virgin Atlantic cancelled its revived service, and none of the major European airlines have resumed flights to Dubai. BA announced that it had extended the period “due to the continuing uncertainty of the situation in the Middle East and airspace instability.”

Previously, BA had canceled its services until later this month. It will keep flying to Saudi Arabia’s Jeddah and Riyadh, less impacted by the airspace restrictions

. Flights at Dubai’s main airport, which was the busiest international airport before the war, were suspended starting at around six in the morning local time.

Later in the day, Dubai International gradually started operating flights to a few destinations. Authorities said the fire had been contained earlier in the day, but no injuries were reported.

Although the frequency of Iranian drone attacks has decreased recently, they have nevertheless targeted strategically significant locations like Dubai’s ports, airports, and buildings.