Global gold prices moved slightly lower amid uncertainties over the\nUS-Iran conflict, as well as pressure from expectations of high interest\nrates that are eroding the appeal of this precious metal.<\/p>\n
Citing Reuters, at the close of trading on Monday (6\/4\/2026) local\ntime or Tuesday (7\/4\/2026) morning WIB, the spot gold price fell 0.4% to\n$4,654.99 per ounce, equivalent to approximately Rp76,807,335 per ounce\n(exchange rate Rp16,500).<\/p>\n
Meanwhile, US gold futures contracts closed slightly higher by 0.1%\nat $4,684.70 per ounce, or about Rp77,297,550 per ounce.<\/p>\n
This weakening occurred as investors held positions and monitored\ndevelopments in geopolitical conflicts, particularly ahead of the\ndeadline for reopening the Strait of Hormuz, a vital route for global\noil trade.<\/p>\n
On the other hand, US President Donald Trump threatened to \u201crain\nhell\u201d on Tehran if no agreement is reached by Tuesday\u2019s deadline.<\/p>\n
This situation has left the market in a wait-and-see mode, while\nassessing the potential ongoing impact on energy prices and global\ninflation.<\/p>\n
Head of global commodities strategy at TD Securities, Bart Melek,\nsaid market participants\u2019 attention is not only on the conflict but also\non the direction of interest rate policy, which are interconnected.<\/p>\n
\u201cMarket focus will likely remain on the war and interest rates. If\nthe conflict drags on, oil prices will continue to rise due to\ntightening supply, adding inflationary pressure,\u201d Melek stated.<\/p>\n
He explained that rising energy prices could narrow the room for\nmanoeuvre for central banks, particularly the Federal Reserve (The Fed),\nin easing monetary policy.<\/p>\n
\u201cThis leaves central banks with less room to cut interest rates and\ncould even reignite discussions on rate hikes if energy prices keep\nrising, which negatively impacts gold,\u201d he continued.<\/p>\n
In normal situations, gold is often sought as a hedge or safe-haven\nasset during heightened uncertainty. However, gold\u2019s lack of yield makes\nit less competitive when interest rates are high, so investor interest\ntends to shift to interest-bearing instruments.<\/p>\n
Besides geopolitical factors, market participants are also awaiting\nseveral US economic data releases this week, such as the March Fed\npolicy meeting minutes, Personal Consumption Expenditures (PCE) data,\nand the consumer price index (CPI).<\/p>\n
The US central bank maintained interest rates last month. The\nmajority of market participants even expect no rate cuts throughout this\nyear, based on the CME\u2019s FedWatch tool.<\/p>\n
Pressure is also evident in other precious metals. Silver prices fell\n0.3% to $72.81 per ounce, or about Rp1,201,365 per ounce; platinum\ndropped 0.6% to $1,976.21 per ounce, or approximately Rp32,607,465 per\nounce; and palladium slid 1.1% to $1,487.22 per ounce, or about\nRp24,539,130 per ounce.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/gold-and-silver-prices-weaken-amid-war-threats-and-interest-rate-pressures-1775613227", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }