Forex Today: Middle East crisis deepens, Gold plunges to fresh 2026-low
Here is what you need to know on Monday, March 23:
Safe-haven flows dominate the action in financial markets as tensions in the Middle East continue to escalate. In the absence of high-tier macroeconomic data releases, investors will pay close attention to geopolitical headlines on Monday.
Over the weekend, United States (US) President Donald Trump said that they will “obliterate” Iran’s power plants, starting with the biggest one, if they refuse to open the Strait of Hormuz within 48 hours. In response, Iran warned that it will retaliate and target all US-linked energy infrastructure in the Middle East if the US attacks its power plants. In a statement published on Sunday, Iran’s Revolutionary Guards said that the Strait of Hormuz will be completely closed if the US executes threats against its energy facilities, adding that companies with US shares will be completely destroyed.
Meanwhile, citing two sources familiar with the matter, the Jerusalem Post reported early Monday that the US is preparing to launch a ground military operation to seize the Iranian island of Kharg.
After losing about 10% in the previous week, $XAU remains under heavy selling pressure to start the week and trades at its lowest level since December below $4,200, down nearly 7% on the day.
Crude Oil prices push higher in the European session on Monday. At the time of press, the barrel of West Texas Intermediate (WTI) was up more than 2% on the day near $100.
The US Dollar (USD) benefits from safe-haven flows and gathers strength against its major rivals early Monday. The USD Index was last seen rising 0.3% on the day at 99.80. In the meantime, US stock index futures stay under heavy pressure, losing between 0.6% and 1% on the day.
$EUR /USD loses traction and trades in the red below 1.1550 in the European session on Monday after having gained more than 1% in the previous week.
GBP/USD continues to push lower after opening with a small bearish gap and trades below 1.3300 on Monday.
Atsushi Mimura, Japan’s Vice Finance Minister for International Affairs and top foreign exchange official, said on Monday that the government considers to take measures on all fronts in foreign exchange (FX) volatility. After rising nearly 1% on Friday, USD/JPY holds its ground and clings to small gains near 159.50.
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