Gold prices fall after record surge amid global tensions, inflation

By Charithya Kumarasiri

Colombo, March 24 (Daily Mirror) - Global gold prices have declined in recent days after reaching historic highs earlier this year, as rising inflation, geopolitical tensions and financial market pressures continue to influence the international market.

At the beginning of 2026, gold was trading at record levels, climbing to around USD 5,600 per ounce in late January, with some forecasts even predicting a rise towards USD 6,000. During the escalation of tensions between the United States and Iran, prices fluctuated between USD 5,000 and USD 5,200 per ounce.

However, despite expectations that the crisis would push prices higher, the upward trend weakened in recent weeks. According to the Sri Lanka Gem and Jewellery Association (SLGJA), gold prices dropped to about USD 4,100 per ounce on March 23 before recovering slightly to around USD 4,300 on March 24, possibly following a temporary pause in hostilities in the Middle East.

The decline has been attributed to rising global inflation, particularly in the United States, which has limited the ability of the Federal Reserve to reduce interest rates. Higher interest rates tend to make gold less attractive to investors, as the metal does not generate regular income.